MARK J. NIGRINI
Resume (June 1, 2012)
Address:
55 Heath Court
Pennington, NJ 08534
(609) 858-3820
[email protected]
Education:
Ph.D.
University of Cincinnati
M.B.A.
University of Stellenbosch
B.Com.(Hons) University of Cape Town
Professional Certification:
Chartered Accountant (South Africa)
Teaching Interests:
Forensic Accounting
Auditing (Internal and External)
Cost and Managerial Accounting
Management Information Systems
Research Focus:
The detection of anomalies and inconsistencies in public and private sector data using advanced data
analysis techniques based on mathematics and statistics. Much of my academic research is based on a
mathematical phenomenon known as Benford’s Law (Benford, 1938) that gives the expected patterns of
the digits in tabulated numerical data. These patterns have been found to be a valuable tool for data
analysts in general, and to auditors specifically, in identifying data omissions, errors, biases,
misstatements, fraud, and other irregularities. My current work seeks insights into (a) advancing the
mathematics underlying Benford’s Law in data interrogation settings, and (b) applying Benford’s Law to
nonbusiness data to detect both irregularities and regularities from the numerical patterns in the data.
Recent research includes the analysis of accounting data, bankruptcy filings, charitable contributions,
streamflow, seismic, and data related to Madoff's Ponzi scheme.
Current Academic Position
2008/current: Associate Professor, School of Business, The College of New Jersey, Ewing, NJ.
Courses taught: (1) Auditing, (2) Managerial Accounting, (3) Capstone Intensive Writing Course focusing
on forensic accounting, and (4) Financial Accounting.
Previous Academic Positions
Assistant Professor, Saint Mary's University, Halifax, Nova Scotia, Canada.
Ernst & Young, Audit Innovation Project, Cleveland, Ohio.
Research Fellow at The Ernst & Young Center for Auditing Research and Advanced Technology, The
University of Kansas, Lawrence, Kansas.
Assistant/Associate Professor, Saint Michael’s College, Colchester, Vermont.
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Refereed Academic Publications:
A Taxpayer Compliance Application of Benford’s Law, The Journal of the American Taxation Association,
Spring, 1996, pp. 72-91.
Digital Analysis and the Reduction of Auditor Litigation Risk, Proceedings of the 1996 Deloitte &
Touche/University of Kansas Symposium on Auditing Problems, May, 1996, pp. 69-81.
The Use of Benford’s Law as an Aid in Analytical Procedures (with Linda J. Mittermaier), Auditing: A
Journal of Practice and Theory, Fall, 1997, pp. 52-67.
Computer Assisted Analytical Procedures using Benford’s Law (with Philip D. Drake), Journal of
Accounting Education, Volume 18 (2), 2000, pp. 127-146.
An Assessment of the Change in the Incidence of Earnings Management Around the Enron-Andersen
Episode, Review of Accounting and Finance, Volume 4 (1), 2005, pp. 92-110.
Monitoring Techniques Available to the Forensic Accountant, Journal of Forensic Accounting, Volume 7
(2), 2006, pp. 321-344.
Benford’s Law Applied to Hydrology Data – Results and Relevance to other Geophysical Data (with Steven
J. Miller), Mathematical Geology, Volume 39 (5), 2007, pp. 469-490.
The Modulo 1 Central Limit Theorem and Benford’s Law for Products (with Steven J. Miller), International
Journal of Algebra, Volume 2 (1-4), 2008, pp. 119-130.
Using Key Performance Indicators and Risk Measures in Continuous Monitoring (with Arlo Johnson),
Journal of Emerging Technologies in Accounting, Volume 5, 2008, pp. 65-80.
Order Statistics and Benford’s Law (with Steven J. Miller), International Journal of Mathematics and
Mathematical Sciences, Volume 2008, 2008, Article ID 382948, 19 pp.
Data diagnostics using second order tests of Benford’s Law (with Steven J. Miller). Auditing: A Journal of
Practice and Theory. Volume 28 (2), 2009, pp. 305-324.
Practitioner Publications:
Using Digital Frequencies to Detect Fraud, The White Paper, April/May 1994, pp. 3-6.
Computers and Auditing: Adding Value with Digital Analysis, Internal Auditor, Feb 1999, pp. 21-23.
The Peculiar Patterns of First Digits, IEEE Potentials, April/May 1999, pp. 24-27.
Fraud Detection: I’ve got your Number, Journal of Accountancy, May 1999, pp. 79-83.
Estimating the Impact of Y2K Processing Errors, IT Audit Forum, Volume 2 (12), June 1999
(www.itaudit.org).
Vital Statistics, Tolley’s Practical Tax Service, Volume 21 (26), 13 December, 2000.
Inspiration from Beethoven’s Sixth, Internal Auditor, August, 2005, pp. 52-56.
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Published Books:
Digital Analysis Using Benford's Law: Tests & Statistics for Auditors, 2000, Global Audit
Publications, Vancouver, BC (Canada). Out of print.
Using Microsoft Access for Data Analysis and Interrogation, 2002, Nigrini, 257 pages.
Forensic Analytics: Methods and Techniques for Forensic Accounting Investigations,
2011, John Wiley & Sons, Inc., Hoboken, NJ. 479 pages.
Benford's Law: Applications for Forensic Accounting, Auditing, and Fraud Detection,
2012, John Wiley & Sons, Inc., Hoboken, NJ. 350 pages.
Losing the War Against Fraud in the American Legal System: Examples, Analysis, and
Commentary, 2013 (forthcoming), John Wiley & Sons, Hoboken, NJ. 325 pages.
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Textbook-related Publications:
Instructor's Lecture Guide:
- Cost Accounting, 2nd Edition by Deakin and Maher (1987, Irwin).
- Cost Accounting, 3rd Edition by Deakin and Maher (1991, Irwin).
- Cost Accounting, 4th Edition by Maher and Deakin (1994, Irwin).
- Cost Accounting, 5th Edition by Maher (1997, McGraw Hill).
Test Bank for Cost Accounting, 3rd Edition by Deakin & Maher (with R. Gruber) (1991, Irwin).
Research in Progress
Developing a discordant measure to quantify the similarity or difference between financial information
from successive fiscal periods (with William Karstens, Department of Physics). The paper evaluates the
use of vector-based distance measures to measure the difference or distance between two sets of
accounting data. Such a measure could be used by auditors as an analytical procedure, by internal
auditors in continuous monitoring environments, by regulators wishing to quantify the difference
between successive financial statements, and by standard setting bodies to quantify the effect of new
accounting statements or a change to International Financial Reporting Standards.
The relationship between Benford’s Law and the seismic signals generated by the Tsunami earthquake on
December 26, 2004. We analyze the seismic signals recorded by the Lamont-Doherty Earth Observatory
in Palisades, NY around the time of the powerful earthquake off the west coast of northern Sumatra. The
displacement and velocity data for the 10 hour period conforms reasonably closely to Benford’s Law.
Editorial Boards
Journal of Forensic Studies in Accounting and Business
International Journal of Disclosure and Governance
Television and Radio Interviews (2004-2012):
Interview aired on February 3, 2005 on BBC 4. Program titled “Measuring nature and fraud” in the More
or Less series presented by Andrew Dilnot and Zillah Watson. The interview can be heard on the internet
at http://news.bbc.co.uk/1/hi/programmes/more_or_less/4230221.stm
Interview aired on August 23, 2005 on BBC 4. Program titled "Programme 1: 1 - the most popular
number!” in the series by Simon Singh titled A Further Five Numbers. The interview can be heard on the
internet at http://www.bbc.co.uk/radio4/science/further5.shtml
Interviewed on December 3, 2008 for the show Radio Lab on WNYC, New York Public Radio. Episode on
Numbers aired on October 9, 2009, section titled “From Benford to Erdos.” Interview can be heard at
www.wnyc.org/shows/radiolab/episodes/2009/10/09
Interview planned for August, 2012 for a new series on the Investigation Discovery Channel featuring the
Charlene Corley fraud in Lexington, SC. http://investigation.discovery.com/.
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Reviews of papers for Journals and Conferences (2003-2012):
American Accounting Association (reviewer for annual meeting 2005/2009)
Auditing: A Journal of Practice and Theory
Central European Journal of Mathematics
College Mathematics Journal
European Accounting Review
Investment Analysts Journal
Journal of Forensic Accounting
International Journal of Accounting, Auditing, and Performance Evaluation
Contemporary Accounting Research
Review of Managerial Science
The Journal of Forensic Studies in Accounting and Business
Issues in Accounting Education
Journal of Accounting, Auditing, and Finance
Refereed Academic Presentations (2007 onwards)
Data Diagnostics Using Second Order Tests of Benford’s Law, Univ. of Waterloo Centre for Information
Systems Assurance 5th Symposium on Information Systems Assurance, Toronto, Ontario, October, 2007.
Monitoring sales reports using the Location Information Audit Risk Score (LIARS) system, 14th World
Continuous Auditing and Reporting Symposium, Rutgers Business School, Newark, NJ, November, 2007.
The Development of a Continuous Monitoring Technique to Quantify the Difference in Accounting Data
from One Period to Another, or to Quantify a Change in Reported Numbers from US GAAP to IFRS, 16th
World Continuous Auditing and Reporting Symposium, Rutgers Business School, Newark, New Jersey,
November, 2008.
A system to quantify the difference between successive financial statements, or to quantify a change from
US GAAP to IFRS (with William Karstens, Department of Physics). 2009 International Conference on
XBRL, University of Kansas, Lawrence, Kansas, April, 2009.
A System to Quantify the Difference Between Successive Financial Statements, or to Quantify a Change
from US GAAP to IFRS (with William Karstens). American Accounting Association, Annual Meeting, New
York, New York, 2009
The use of descriptive statistics as an analytical procedure for the continuous monitoring of multi-period
data, 19th World Continuous Auditing and Reporting Symposium, Rutgers Business School, Newark,
New Jersey, November, 2009.
The control of purchasing card transactions: Continuous monitoring, intermittent monitoring, or a hybrid
approach? 21st World Continuous Auditing and Reporting Symposium, Rutgers Business School,
Newark, New Jersey, November, 2010.
Monitoring procedures and steps to detect CFO or monitoring team fraud, 23rd World Continuous
Auditing and Reporting Symposium, Rutgers Business School, Newark, New Jersey, November, 2011.
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Presentations at Practitioner National and International Conferences (2005 onwards):
Institute of Internal Auditors: General Audit Management Conference. Continuous Monitoring: The
Challenge in 2005, SOX 404, and More. Orlando, Florida, March, 2005.
International Assoc. of Airline Internal Auditors: 14th Annual Conference. Plenary session Techniques and
Technologies for Continuous Monitoring in the Airline Industry. Kuala Lumpur, Malaysia, 2005.
Institute of Internal Auditors: Financial Services Conference, Acrobatics with Mathematics – No Longer an
“Option.” Orlando, Florida, June, 2007.
Information Systems and Control Association: Oceania CACS (Control and Security Conference), Plenary
session titled Benford’s Law: The Facts, the Fun, and the Future, Auckland, New Zealand, 2007.
1st North American IDEA User Conference. Lunch session on Benford’s Law and a concurrent session.
Atlanta, Georgia, September, 2008.
Association of College and University auditors, General Session Keynote Speaker, Benford’s Law, the fun,
the facts, and the future, Minneapolis, Minnesota, 2009.
National Association of Certified Valuation Analysts, 2011 Annual Consultants' Conference, keynote
session Benford's Law: The fun, the facts, and the future, San Diego, California, June, 2011.
Institute of Internal Auditors and Association of Certified Fraud Examiners, Conference keynote session
Forensic Analytics: The facts, the fun, and the findings, Williamsburg, Virginia, April, 2012.
Association of Certified Fraud Examiners, annual meeting, concurrent session, Benford's Law: The fun, the
facts, and the future, Orlando, Florida, June, 2012 (forthcoming).
National Association of Certified Valuation Analysts, 2012 Annual Consultants' Conference, keynote
session Benford's Law: A review, relevant findings, and recent applications, Dallas, TX, (forthcoming).
Presentations to Professional Associations and Local Conferences (select list):
Association of Certified Fraud Examiners
Association of College and University Auditors
Bankers Administration Institute
California Franchise Tax Board
Deloitte & Touche, Ernst & Young, and KPMG
Florida Board of Regents
Information Systems and Control Association (ISACA)
Institute of Internal Auditors
Insurance Accounting and Systems Association
International Association of Airline Internal Auditors
National Association of Certified Valuation Analysts
New York State Comptroller's Office
NorthEast Insurance Anti-Fraud Group
Texas Society of CPAs
Texas State Auditor’s Office
Treasury Inspector General for Tax Administration
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Magazine, Journal and Newspaper Interviews (select list):
“Lover of the Law of Numbers” in CA Magazine, May, 1995.
“He’s Got Their Number: Scholar uses math to foil financial fraud” The Wall Street Journal, July 10, 1995.
“Dr. Digit’s Truth Serum” in Canadian Business Magazine, September, 1995.
“Don’t Count on Cheating: New Computer Program Aims to Reveal Fabricated Figures” in The Globe and
Mail, September 4, 1995.
“Stats, Lies, and DATAS: Obscure Mathematical Law Foils Fraud in Business and Government” in
Technology in Government, October, 1995.
“Benford’s Law: Numbers don’t lie. People do” in Contingencies, March/April, 1996.
“Pick a Number. Any Number” in Dermatology Times of Canada, April, 1996.
“Numbers Tattle on Tax Cheats” in The Tampa Tribune, April 3, 1996.
“Following Benford’s Law, or Looking Out for No. 1” in The New York Times, August 5, 1998.
“Numerology for Accountants” in Journal of Accountancy, November, 1998.
“Weiter Weg Zur Zwei” in Der Spiegel (Germany), November 16, 1998.
“1:0 Fur Die Eins. Ein Mathematisches Gesetz Entlarvt Steuersunder” in Suddeutsche Zeitung Magazin
(Germany), November 21, 1998.
“A Penny Earned is a Penny Fudged?” in Business Week, December 14, 1998.
“Pennies from Heaven?” in CFO Magazine, April, 1999.
“The Power of One” in New Scientist, 10 July, 1999.
“Math Formula could help spot Tax Cheats: An obscure Statistical Phenomenon First noted in the 1800s
is getting attention” in Philadelphia Inquirer, April 17, 2000.
“Applying Benford’s Law to Internal Audit” in KnowledgeSpace, August 14, 2000.
“Fraudsters’ Days are Numbered” in Financial Times (London), August 17, 2000.
“Passion for Numbers: St. Michael’s professor teaches accounting and investigates discrepancies” in The
Burlington Free Press, September 12, 2004.
“Thinking About Tricking the Tax Man? Beware the long arm on Benford’s Law,” in The Ottawa Citizen,
April 30, 2009.
"Benford's Law: A Useful, but Imperfect, Fraud-Catcher," Globe and Mail (Canada), December 22, 2010.
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