Resume

MARK J. NIGRINI Resume Address: 55 Heath Court Pennington, NJ 08534 (609) 858-3820 nigrini@tcnj.edu Education: Ph.D. M.B.A. B.Com.(Hons) University of Cincinnati University of Stellenbosch University of Cape Town July 1, 2009 Professional Certification: Chartered Accountant (South Africa) Teaching Interests: Forensic Accounting Cost and Managerial Accounting Auditing (Internal and External) Management Information Systems Applied Mathematics Research Focus: The detection of anomalies and inconsistencies in public and private sector data using advanced data analysis techniques based on mathematics and statistics. The focus of my academic research is 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 focuses on (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 work includes the analysis of accounting, streamflow, lake, seismic, and Madoff data. Dissertation Title: The Detection of Income Tax Evasion Through an Analysis of Digital Distributions. Resume: Mark J. Nigrini, continued Academic Experience: Lecturer, Department of Accounting, University of Cape Town, Cape Town, South Africa. 1984/1986: Management Accounting and Financial Policy. Instructor, University of Cincinnati, Cincinnati, Ohio. 1988/1990: Introductory Financial Accounting. 1990/1992: Research Assistant for Prof. Linda J. Mittermaier and Prof. Wallace R. Wood. Visiting Assistant Professor, Wayne State University, Detroit, Michigan. 1992/1993: Intermediate Cost Accounting Assistant Professor, Saint Mary's University, Halifax, Nova Scotia, Canada. 1993/1994: 1994/1995: 1995/1996: 1996/1997: Financial and Managerial Accounting & Management Information Systems Financial Accounting, Management Information Systems, & Cost Accounting Management Accounting Seminar & Cost Accounting On leave to Ernst & Young, Audit Innovation Project, Cleveland, Ohio. Visiting Assistant Professor, Southern Methodist University, Dallas, Texas. 1998/1999: (1) Undergraduate Auditing, (2) Graduate Auditing, and (3) Graduate Financial Modeling, Planning, and Control using Microcomputers. 1999/2000: (1) Undergraduate Auditing, (2) Graduate Auditing, (3) Undergraduate Financial Modeling and Control using Microcomputers, and (4) Graduate Financial Modeling, Planning, and Control using Microcomputers. The Ernst & Young Center for Auditing Research and Advanced Technology, The University of Kansas, Lawrence, Kansas. 1997/2002: Research Fellow. 2000/2004: Self-funded sabbatical. During this time I presented my research and quantitative auditing techniques to accountants in the U.S. and abroad. I also wrote and published Using Microsoft Access for Data Analysis and Interrogation. 2004/2008: Assistant/Associate Professor, Saint Michael’s College, Colchester, Vermont. Courses taught: (1) Managerial Accounting, (2) Auditing, (3) Seminar in Accounting, and (4) Special Topics in Business & Accounting (2006-Advanced Auditing, 2007-Applied Mathematics, 2008-Forensic Accounting). 2008/current: Associate Professor, School of Business, The College of New Jersey, Ewing, NJ. Courses taught: (1) Financial Accounting, (2) Managerial Accounting, and (3) Capstone Intensive Writing Course focusing on Forensic Accounting. 2 Resume: Mark J. Nigrini, continued 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 (forthcoming). 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. 3 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). Resume: Mark J. Nigrini, continued Test Bank for Cost Accounting, 3rd Edition by Deakin & Maher (with R. Gruber) (1991, Irwin). Published Books: Digital Analysis Using Benford's Law: Tests & Statistics for Auditors, Global Audit Publications, Vancouver, BC (Canada). Published June, 2000. Currently out-of-print. Using Microsoft Access for Data Analysis and Interrogation, 257 pp. manuscript completed in 2002. Currently out-of-print. Working Papers under review: None. Research in Progress: 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). This paper develops and tests a methodology to measure the difference in financial results between entities, or from one period to the next for the same entity. The methodology could be used to measure the impact of a change in accounting policy or the adoption of a new accounting standard. The relationship between option volatility measures and arc length calculations. The standard deviation of security returns is known as the volatility and is an important parameter used to price options. This work using SPX and VIX data for 2004-2007 explores the relationship between the traditional measure of volatility and the use of mathematical methods based on arc length. The order and arrangement of measurements in financial and accounting data (with Steven Miller). We find that the aggregation of 25 accounting data sets from 2005 and 2006 each conform very closely to Benford’s Law. The paper argues that deviations from Benford’s Law might be an anomaly that could be used as a hedge fund trading strategy. 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. Counting on accounting: Useful mathematics for auditing, accounting, & finance professionals. Business Week (2006) noted that mathematical skills are valuable in commerce and industry, with no mention of mathematics being used in accounting or auditing. This work describes the areas of mathematics that could be of value to auditors for operational improvements and the reduction of risk exposures An evaluation of the use of descriptive statistics as a procedure to identify unusual or suspicious items. This paper has been written but the individual that supplied the data does not want the results published. I am busy looking for a new data source. 4 Resume: Mark J. Nigrini, continued Editorial Boards Journal of Forensic Studies in Accounting and Business International Journal of Disclosure and Governance (not yet formalized) Reviews of papers for Journals and Conferences (2003-2009): 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 Television and Radio Interviews (2004-2008): 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 stochastic processes will most likely be aired in 2009. 5 Resume: Mark J. Nigrini, continued Refereed Academic Presentations (2005 onwards) Advanced Tests Based on Benford’s Law to Test the Reliability of and Control Risk Pertaining to Accounting Data, American Accounting Association, Annual Meeting, San Francisco, 2005. Data Diagnostics Using Second Order Tests of Benford’s Law, University of Waterloo Centre for Information Systems Assurance 5th Symposium on Information Systems Assurance, Toronto, Ontario, October, 2007. Continuous Auditing and Reporting Symposium, Rutgers Business School, Newark, New Jersey, November, 2007. Monitoring sales reports using the Location Information Audit Risk Score (LIARS) system, 14th World Monitoring sales reports using the Location Information Audit Risk Score (LIARS) system , 14th World Continuous Auditing and Reporting Symposium, Rutgers Business School, Newark, New Jersey, 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 (forthcoming). Other Academic Presentations: The Ohio State University, Accounting & MIS Research Colloquium in Columbus, Ohio, 1994. The University of Kansas, School of Business Colloquium, 1996. The University of Cincinnati, Department of Quantitative Analysis Colloquium, 1997. The University of Kansas, Ernst & Young Center for Auditing Research, seminar, 1997. Rutgers University, Rutgers Accounting Research Center Colloquium, 1998. Dartmouth College, The Chance Lectures, December, 2000. The University of Kansas, Ernst & Young Center for Auditing Research, seminar, May, 2001. Baylor University, Guest lecturer - auditing, August, 2001. Lamont-Doherty Earth Observatory, colloquium, July, 2006. 6 Resume: Mark J. Nigrini, continued Presentations at Practitioner National and International Conferences (2004-2009): Association of Certified Fraud Examiners: 15th Annual ACFE Fraud Conference. Continuous Monitoring and Fraud. Las Vegas, Nevada, July, 2004. Institute of Internal Auditors: General Audit Management Conference. Continuous Monitoring: The Challenge in 2005, SOX 404, and More. Orlando, Florida, March, 2005. International Association of Airline Internal Auditors: 14th Annual Conference. Plenary session titled Techniques and Technologies for Continuous Monitoring in the Airline Industry. Kuala Lumpur, Malaysia, September, 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, September, 2007. IDEA. 1st North America IDEA User Conference. Lunch session on Benford’s Law and a concurrent session. Atlanta, Georgia, September, 2008. Presentations to Professional Associations and Local Conferences (select list): Association of College and University Auditors Bankers Administration Institute California Franchise Tax Board Deloitte & Touche, Ernst & Young, and KPMG Florida Board of Regents Institute of Internal Auditors International Association of Airline Internal Auditors NorthEast Insurance Anti-Fraud Group Texas Society of CPAs Association of Certified Fraud Examiners Treasury Inspector General for Tax Administration Texas State Auditor’s Office Insurance Accounting and Systems Association Information Systems and Control Association (ISACA) 7 Resume: Mark J. Nigrini, continued 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. 8