10/2/2015 acc 522 statistical methods for forensic accounting & assurance (fall 2008) gangolly 1...

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05/18/ 22 Acc 522 Statistical Methods for Forensic Accounting & Assurance (Fall 2008) Gangolly 1 Statistical Methods for Forensic Accounting & Assurance Jagdish S. Gangolly Department of Accounting & Law State University of New York at Albany

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Page 1: 10/2/2015 Acc 522 Statistical Methods for Forensic Accounting & Assurance (Fall 2008) Gangolly 1 Statistical Methods for Forensic Accounting & Assurance

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Statistical Methods for Forensic Accounting & Assurance

Jagdish S. Gangolly

Department of Accounting & Law

State University of New York at Albany

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Introduction• Statistics helps us get information from data

• Statistics can be used to

– Get a description of data in graphical form to help us extract information (Descriptive Statistics)

– Use the data in decision making

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Descriptive Statistics Example: FASBs

• Changes in Financial accounting Standards

• Representation of data in an adjacency matrix

• S-Plus or R program to represent it visually

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Adjacency matrixRows & Columns represent standard, the frequencies are the number of changes made by row standard to the column standard

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The Program

> n <- 131 > x <- cos(1:n * (2*pi/n)) > y <- sin(1:n * (2*pi/n)) > mat <- as.matrix(mymatrix) > from <- row(mat)[mat==1] > to <- col(mat)[mat==1] > plot(x,y) >  text(x*1.05,y*1.05,1:n) > arrows(x[from],y[from],x[to],y[to])

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Descriptive Statistics: An Example: The Graph

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Visual Delights I: Mapuccino (Hyperbolic Tree)The source for the following slides is:

http://www.math.yorku.ca/SCS/Gallery/

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Visual Delights II: Cheesemap of France

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Visual Delights III: Multivariate StarplotVariables: Price, Gear Ratio and Turning Circle

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Visual Delights IV: Mapping temporal Patterns

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Visual Delights V: Correlogram

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Visual Delights VI: Animated Tri-plot