EconPapers    
Economics at your fingertips  
 

Benford’s Law and transparency: an analysis of municipal expenditure

Ricardo Cella and Ercilio Zanolla
Additional contact information
Ricardo Cella: Universidade Federal de Goiás
Ercilio Zanolla: Universidade Federal de Goiás

Brazilian Business Review, 2018, vol. 15, issue 4, 331-347

Abstract: This study aims to ascertain an adherence between the level of municipal transparency and the application of Benford's Law in implementing the municipal expenditure. Therefore, two municipalities in the state of Goiás were selected, one with a higher and one a lower level of transparency, according to the National Transparency Ranking of the Federal Public Ministry, of 2016. Then, we performed Z and chi-square tests on the expenses engaged in the first four months of 2016 to check for incompliances with the Benford’s Law. Based on the data analyzed we were able to conclude that: the municipality with greater transparency has greater conformity with Benford’s Law; the municipality with less transparency showed greatest discrepancies between the expected and observed frequencies; the municipality with less transparency showed higher likelihood of irregularities in the execution of expenditures, compared to the municipality with greater transparency. Both municipalities showed discrepancies regarding Benford's Law, differing from each other only by the degree of calculated divergences from the model.

Keywords: Data Auditing; Ranking of Municipal Transparency; Accounting Fraud Detection; Municipal Expenditures; Corruption. (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://bbronline.com.br/index.php/bbr/article/download/371/565 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bbz:fcpbbr:v:15:y:2018:i:4:p331-347

Access Statistics for this article

Brazilian Business Review is currently edited by Emerson Mainardes

More articles in Brazilian Business Review from Fucape Business School Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES. Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Lasso ().

 
Page updated 2018-12-29
Handle: RePEc:bbz:fcpbbr:v:15:y:2018:i:4:p331-347