Bachelor thesis - source code for the performed analysis
University of St.Gallen
Field of study: Business Administration
St. Gallen, February 22, 2021
The Wirecard scandal is considered one of the largest financial scandals of the decade, which caused losses of several billion euros. This paper examines the digit structure of Wirecard's financial figures in the period from 2005 to 2019 by analyzing the conformity with the expected frequency distributions according to Benford's law. Against this background, Benford's law represents a forensic data analysis tool. Through the literature review on this topic, quantitative-empirical best practices have been derived, with the help of which the Benford analysis was performed. The results show that company-specific accounting fraud cannot be detected by Benford analysis of the first, second, and first-two significant digits alone. Nevertheless, this paper shows how Benford's law can be used as an FDA tool in accounting and auditing and thus provides an introduction to data analysis techniques for fraud detection.
Tragust Sebastian
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