
The Audit Podcast
Ep 297: Benford's Law w/ Daniel McCarville
Benford's Law is often one of the first analytics techniques internal auditors learn, but there is much more to it than simply looking for fraud. In this republished episode, Trent Russell talks with Daniel McCarville, a researcher focused on Benford's Law, about where the law came from, how it works, and how it can be used to identify unusual data, data-quality issues, control avoidance, and potential anomalies. Daniel also walks through applications involving earthquakes, law enforcement data, standardized test scores, suspicious financial transactions, and Power BI. They discuss why Benford's Law should not automatically be treated as a fraud detector, how breaking large datasets into smaller groups can make analysis more useful, and why auditors still need to apply their own judgment after analytics identify something unusual. The episode also looks at how Benford's Law is being used outside of internal audit and how newer approaches are expanding what auditors can do with the technique. Daniel will also be presenting on Benford's Law, AI, and Power BI at the Audit Analytics & AI Conference on October 21–22. Modern Benford's LawState of the Art Techniques for Audit and Compliance Professionals Be sure to connect with Trent Russell on LinkedIn and check out Green Skies Analytics for more resources on audit analytics and AI. Also, be sure to follow us on our social media accounts on LinkedIn, Instagram, and TikTok. Also be sure to sign up for The Audit Podcast newsletter and check out the full video interview on The Audit Podcast YouTube channel. This podcast is brought to you by Green Skies Analytics, the services firm that helps internal audit teams make analytics actually work. Whether your audit team needs help with an analytics or AI strategy, methodology, governance, literacy, or anything else related to audit analytics, visit Green Skies Analytics to learn more and schedule a call.

