The previous article by Tim Harford mentioned that Madoff's financial data was Benford compatible. So I doubt that using it would have actually prevented the Greek or any other disaster.
The previous article by Tim Harford mentioned that Madoff's financial data was Benford compatible. So I doubt that using it would have actually prevented the Greek or any other disaster.
According to statisticians, it is almost impossible to manipulate data in a way that a certain outcome is guaranteed and Benford’s Law is met at the same time. Hence, tax authorities in several countries are using Benford’s Law as a default testing device.
Not meeting Benford's Law is a good indicator that there has been some dodgy dealing. However, meeting Benford's Law is not a good indicator that everything is above board.
The reason Greece didn't find people smart enough to satisfy Benford's is that Benford's wasn't being used in the audit.
If it was common knowledge that audits utilize this Law, you can bet that Greece's data would have been compatible.