Authors
Roger L. Hayen & Richard M. Peters
Abstract
Electronic spreadsheets, which are considered an aid to accountants and financial advisers, may have a disastrous impact on critical business decisions. Since errors occur in these programs, a review of both the spreadsheet application and the procedures followed in their development becomes increasingly important.
Spreadsheet errors generally can be categorized as:
- Wrong data.
- Erroneous formulas.
- Logically incorrect formulas.
- Wrong version.
- Wrong template or application.
- Data overwriting formulas.
Such errors can be forestalled by paying close attention to the development of the matrix in a systematic manner. A spreadsheet development life cycle (SDLC) contains the steps to be taken in creating an electronic spreadsheet.
Spreadsheet applications should have as many built-in accounting checks as possible. While documenting spreadsheets and verifying logic is not exciting, it is one of the most important activities for ensuring spreadsheet integrity.
Sample
A cell usage map reveals in which cells the formulas, labels, and values are located.
Such a map facilitates scanning the spreadsheet for unusual or unexpected patterns of formula usage (such as in cell B2 above).
Publication
1989, Strategic Finance, Volume 70, Number 10, April, pages 30-33
Full article
Not available
