Benford’s Law as a Tool for Audit Planning and Control: An Analysis of Municipal Expenditures
This study presents a practical application of Benford’s Law to the expenditure data of two Greek municipalities, Messini and Trifylia, aiming to evaluate the extent to which these financial transactions conform to the expected digit distributions as defined by Benford’s Law. The primary goal is to assess the utility of Benford’s Law as a tool in public sector auditing processes and determine whether it can raise red flags to prompt further investigative procedures.