Benford’s Law: an instrument for selecting tax audit targets? Export

@article{citeulike:3630450, abstract = {Abstract\ \ We consider whether Benford's Law can be used to improve target selection prior to the start of on-site tax audits, thus increasing effectiveness and efficiency of fiscal enforcement. Laboratory experiments are conducted to obtain manipulated data and compare these to data which are known to be unmanipulated. We find that Benford's Law can be used as a tool for audit selection, but that auditors must be cautious to ensure that Benford's Law can be expected to apply to unmanipulated data of the prospective audit target. We also find that subjects cannot adapt sufficiently to Benford's Law during tax fraud activity.}, author = {Watrin, Christoph and Struffert, Ralf and Ullmann, Robert}, citeulike-article-id = {3630450}, citeulike-linkout-0 = {http://dx.doi.org/10.1007/s11846-008-0019-9}, citeulike-linkout-1 = {http://www.springerlink.com/content/296p91r570034k25}, day = {1}, doi = {10.1007/s11846-008-0019-9}, journal = {Review of Managerial Science}, keywords = {business, classification, evaluation, hypothesis\_testing, ideas, machine\_learning, mining, tax\_audit}, month = {November}, number = {3}, pages = {219--237}, posted-at = {2009-08-05 08:05:44}, priority = {0}, title = {Benford's Law: an instrument for selecting tax audit targets?}, url = {http://dx.doi.org/10.1007/s11846-008-0019-9}, volume = {2}, year = {2008} }

TY - JOUR ID - citeulike:3630450 L3 - citeulike-article-id:3630450 N2 - Abstract  We consider whether Benford’s Law can be used to improve target selection prior to the start of on-site tax audits, thus increasing effectiveness and efficiency of fiscal enforcement. Laboratory experiments are conducted to obtain manipulated data and compare these to data which are known to be unmanipulated. We find that Benford’s Law can be used as a tool for audit selection, but that auditors must be cautious to ensure that Benford’s Law can be expected to apply to unmanipulated data of the prospective audit target. We also find that subjects cannot adapt sufficiently to Benford’s Law during tax fraud activity. IS - 3 JF - Review of Managerial Science EP - 237 TI - Benford’s Law: an instrument for selecting tax audit targets? VL - 2 SP - 219 KW - business KW - classification KW - evaluation KW - hypothesis_testing KW - ideas KW - machine_learning KW - mining KW - tax_audit AU - Watrin, Christoph AU - Struffert, Ralf AU - Ullmann, Robert PY - 2008/11/01/ UR - http://dx.doi.org/10.1007/s11846-008-0019-9 ER -