Conditional probability of actually detecting a financial fraud - a neutrosophic extension to the application of Benford's law

摘要

This study actually draws from and builds on our earlier paper "Benford's Law and its Application in Financial Fraud Detection" (Kumar and Bhattacharya, 2002). Here we have simply added a neutrosophic dimension to the problem of determining the conditional probability that a financial fraud has been actually committed, given that no Type I error occurred while rejecting the null hypothesis Ho: The observed first-digit frequencies approximate a Benford distribution; and accepting the alternative hypothesis H{sub}1: The observed first-digit frequencies do not approximate a Benford distribution