Beneford’s law

1. There is a law called “Beneford’s law. We have covered several examples in class to acquaint you with how it works. Very briefly it states that the first digit of multi-digit numbers will fall into a pattern within certain percentages. The percentages are based on logarithms. You can Google Beneford’s law to get a better understanding of what it does and how it is used. Auditors apply this law along with other techniques to test if transactions seem to be legitimate.

1. This question will test the law based on S and P 500 data provided by me with this question for “Recent Price”, “Shares Outstanding” and “Employees.” Open the file and establish control of it.

1. You are to add and properly label separate columns, for the left-hand most position of each of the 3 fields provided. Replace any errors with a 0. Also add a properly labelled column with the first letter of the Name.

9. Locate the sheet tab called Beneford’s. Create a pivot table starting in Cell D1 that will tally the percent of the count of first digits of Recent Price. Filter out any values that are not between 1 and 9. Apply Conditional Formatting to the percentages calculated by your pivot table for values greater than 10.00% in green and less than 10.00% red. In the next column over calculate the difference between your percentages and the Beneford percentages from Column B. Insert a Column Chart below the pivot table with the percentages calculated in your pivot table. Resize the chart so that it is no wider than the Pivot Table above it and the percentages calculated.

1. Copy the Pivot table from just above pasting it starting in Column I. Modify the Pivot Table so that it now is going to track Shares Outstanding. Calculate the difference in the percentages from the Beneford percentages. Instead of a Column Chart you are now to use a Bar Graph.

1. Copy the example from part d, pasting it starting in Column N. Modify this Pivot Table so that it will now track Employees. Calculate the percentage differences from Beneford. Instead of a Column Chart you are to use a Line graph.

1. When you have completed the above sections, you will have 3 sets of analyses, starting in columns D, I and N, each testing the first digit distributions for the 3 sets of data. Each will have a different type of chart.

1. Copy only each of the charts, but not the pivot tables, to a new sheet tab to be called Charts and Slicer. The three charts should be set up so that they are aligned and next to each other and are the same height and width will all 3 charts visible on the screen at the same time.

1. Add a slicer just below the 3 charts to slice on the first letter of the name. Spread it across so that part of it is under each chart. Set it up so that it is 2 rows wide. The slicer should be slicing on the 3 charts at the same time. If it isn’t then right click on the bottom of the slicer and look at “Report Connections.” Make any necessary adjustments.

1. To recap you are to create 3 pivot tables along with 3 analyses different charts in one tab and then copy just the charts along with a slicer into a separate tab.

1. Test your work by selecting a letter to slice and then filtering on the same letter in your original data. Are the results consistent? Briefly explain whether your slicing and filtering come up with the same results. Place your explanation under the slicer.

IF YOU NEED HELP WITH THIS ASSIGNMENT PLEASE CONTACT US!