## New Benford's Law Tests

### For High-Impact Digital Analysis

In consultation with renowned expert in Benford's Law, Dr. Mark Nigrini, IDEA's digital analytics have been updated and expanded to bring you four more fraud-fighting tests.

#### Last Two Digits Test

The Last Two Digits test analyzes the frequency of the last two digits and is useful in auditing election results, inventory counts—any situation in which padding or number invention is suspected.

#### Second Order Test

The Second Order test is based on the digits of the differences between amounts that have been sorted from smallest to largest (ordered). The first two digits of the differences should follow the digit frequencies of Benford's Law. This test is particularly useful in indicating data integrity issues.

#### Summation Test

The Summation test is similar to the traditional Benford's Law test, but instead of calculating the number of occurrences for each first two digits, it sums each amount. This allows you to identify clearly significant amounts that do not follow the expected results of Benford's Law.

#### Advanced Settings

With most Benford's Law tests in IDEA Version Nine, you have the option of extracting “suspicious” data whose digit frequencies do not follow the digit frequencies of Benford's Law. With Advanced Settings, you can also refine this output to limit the size of the output database.