Vital statistics

摘要

may be falsifying their accounts.This is because the Chi Squared test is a statistical method for comparing expected and actual results. (See Panel 1 for an example exploring the idea that employees may be taking more sick leave than expected.) However, through research I discovered that the Revenue seems to be applying the Chi Squared test without reference to Benford's Law -a mathematical technique for fine-tuning what is meant by expected. This is a potentially problematic approach when analysing business accounts.