Font Size: 

This study aims to analyze the use of Benford's Law in the planning of state finance audit with a case study on audit of financial report of central government (LKPP) year 2015. The analysis is conducted quantitatively through first digit test, second digit test, and first two-digit test of Benford’s Law over 8.385.414 records of central government expenditure transactions in 2015, and logistic regression modeling to predict the presence of expenditure-related findings based on the financial audit report (LHP) of supreme audit agency (BPK) of LKPP year 2015. Quantitative analysis results are then supplemented by qualitative analysis through in-depth interviews with some related parties to provide additional information required. This study demonstrates that the use of Benford's Law is able to provide a red flag for the possibility of expenditure-related findings during examination, which later can be used as one of the variables in assessing the control risk of an entity when planning the audit.

Benford’s Law; logistic regression; risk-based audit; state finance audit planning