Abstract

In this study, the types and the reasons of fraud in the balance sheets of brokerage houses has been summarized, generic information about Benford's law and χ² goodness of fit test has been given and the application of Bendford's law for financial auditing has been explained.

Then Bendford's law has been applied on the consolidated balance sheets of the brokerage sector which is published at 31 March 2012 on their web site and checked if they contain fraudulent decleration or not. In this paper, findings have showned that H0 hypothesis is acceptable with 5% error margin.