Certified Information Systems Auditor (CISA) — Question 1137

Which of the following is MOST important for an IS auditor to verify when reviewing the planned use of Benford’s law as a data analytics technique to detect fraud in a set of credit card transactions?

Answer options

• A. The transactions are in double integer format.
• B. The transaction amounts are selected randomly without restriction.
• C. The transaction analysis is limited to transactions within standard deviation.
• D. The transactions are all in the same currency.

Correct answer: D

Explanation

The correct answer is D because having all transactions in the same currency ensures that the analysis is valid and comparable. If transactions are in different currencies, it could distort the results of the analysis. Options A, B, and C are not as critical to the validity of using Benford's law for fraud detection.