CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Fraud Detection Tools: Benford's Law And The Beneish M Score

Icon_Self-Study
Self-Study
Icon_Level
Overview
Credits
CPE Credits
2 Credits: Accounting

Course Description

This course provides in-depth coverage of two specific tools for fraud detection. Benford’s Law predicts the probability of the distribution of first digits in a set of accounting numbers. In a large population of accounting transactions, by comparing the actual occurrence of first digits in accounting numbers to the Benford distribution, areas of concern are highlighted for further analysis and evaluation. The Beneish M Score quantifies the possibility of financial manipulation occurring in financial statements. If the M Score is greater than (or less negative than) -2.22, it is likely that there is some manipulation of the financial results.

Benford’s Law assists in the detection of transactional fraud while the Beneish M Score assists in the detection of fraud in financial reporting. Both of these are powerful tools in the detection of fraud.

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Recognize how to use Benford’s Law to detect potential fraud
  • Identify situations where Benford’s Law is and is not applicable
  • Recognize the Beneish M Score and its components

Course Specifics

Course ID
1173467
Revision Date
March 18, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
Qualifies for CA Fraud: Yes
Qualifies for CA Fraud Credits: 1

Course Instructor

Joseph Helstrom Headshot
Joseph Helstrom, CPA

Joseph Helstrom, CPA, is a partner at CFO Resources, LLC, a company focused on training and courseware for CPAs. He’s also the owner of Mill Creek Publishing LLC. Joe has over 30 years of experience as a CPA in both public accounting and industry, with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters, and strategic planning. After graduation from Butler University with a degree in accounting, Joe got his start at Ernst & Young. Subsequent to that, he has served for several different companies as a chief financial officer; director of treasury and …

Joseph Helstrom, CPA Read More »

Fraud Detection Tools: Benford's Law And The Beneish M Score

Expert Instructors
Format
CPE CREDITS
2 Credits: Accounting

$58.00$78.00

Clear
Icon_Self-Study
Self-Study
Icon_Level
Overview
Credits
CPE Credits
2 Credits: Accounting

Course Description

This course provides in-depth coverage of two specific tools for fraud detection. Benford’s Law predicts the probability of the distribution of first digits in a set of accounting numbers. In a large population of accounting transactions, by comparing the actual occurrence of first digits in accounting numbers to the Benford distribution, areas of concern are highlighted for further analysis and evaluation. The Beneish M Score quantifies the possibility of financial manipulation occurring in financial statements. If the M Score is greater than (or less negative than) -2.22, it is likely that there is some manipulation of the financial results.

Benford’s Law assists in the detection of transactional fraud while the Beneish M Score assists in the detection of fraud in financial reporting. Both of these are powerful tools in the detection of fraud.

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Recognize how to use Benford’s Law to detect potential fraud
  • Identify situations where Benford’s Law is and is not applicable
  • Recognize the Beneish M Score and its components

Course Specifics

Course ID
1173467
Revision Date
March 18, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
Qualifies for CA Fraud: Yes
Qualifies for CA Fraud Credits: 1

Course Instructor

Joseph Helstrom Headshot
Joseph Helstrom, CPA

Joseph Helstrom, CPA, is a partner at CFO Resources, LLC, a company focused on training and courseware for CPAs. He’s also the owner of Mill Creek Publishing LLC. Joe has over 30 years of experience as a CPA in both public accounting and industry, with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters, and strategic planning. After graduation from Butler University with a degree in accounting, Joe got his start at Ernst & Young. Subsequent to that, he has served for several different companies as a chief financial officer; director of treasury and …

Joseph Helstrom, CPA Read More »

Fraud Detection Tools: Benford's Law And The Beneish M Score

Expert Instructors
Format
CPE CREDITS
2 Credits: Accounting

$58.00$78.00

Clear