Authors
Kent Schneider, Lana Becker, & Gary Berg
Abstract
Given that the usage and complexity of spreadsheets in the accounting profession are expected to increase, it is more important than ever to ensure that accounting graduates are aware of the dangers of spreadsheet errors and are equipped with design skills to minimize those errors.
Although spreadsheet mechanics are prevalent in accounting curricula, less attention has been given to design considerations that can reduce the incidence of spreadsheet errors.
The extant literature provides evidence of the most common types of spreadsheet errors and explanations as to why they occur.
Using the work of Panko and others, this paper outlines a three-step approach for introducing spreadsheet design practices to novice spreadsheet developers.
To facilitate design instruction, this paper provides a summary of foundational readings related to spreadsheet errors as well as specific teaching strategies for addressing the most common spreadsheet errors identified in the literature.
Sample
Suggested canon of 'spreadsheet errors' articles for accounting educators.
Taxonomies:
- Panko (1998). What we know about spreadsheet errors
- Panko & Halverson (2001). An experiment in collaborative development to reduce spreadsheet errors
- Panko & Aurigemma (2010). Revising the Panko-Halverson taxonomy of spreadsheet errors
Theories:
- Kruck & Sheetz (2001). Spreadsheet accuracy theory
- Kruck (2006). Testing spreadsheet accuracy theory
- Panko (2013). The cognitive science of spreadsheet errors: Why thinking is bad
Best practices:
- Hayen & Peters (1989). How to ensure spreadsheet integrity
- Freeman (1996). How to make spreadsheets error-proof
- Berglas & Hoare (1999). Spreadsheet errors: Risks and techniques
- Whittaker (1999). Spreadsheet errors and techniques for finding them
- Panko (2006). Spreadsheets and Sarbanes-Oxley: Regulations, risks, and control frameworks
- Read & Batson (1999). Spreadsheet modelling best practice
- Simkin (2004). Ferret out spreadsheet errors
- Martin (2005). Get spreadsheets under control
- Rose (2007). Taking human errors out of financial spreadsheets
- Stoller (2010). Spreadsheet users often lack advanced design capabilities
- Hart (2014). Spreadsheets gone wild
- Meservy & Romney (2015). How to debug EXCEL spreadsheets
Pedagogy:
- Chandler & Marriott (1994). Different approaches to the use of spreadsheet models in teaching management accounting
- Davis (1996). Tools for spreadsheet auditing
- Panko & Sprague (1998). Hitting the wall: Errors in developing and code inspecting a "simple" spreadsheet model
- Kruck & Maher (1999). Home mortgage analysis for cultivating crucial spreadsheet and model development skills
- Teo & Tan (1999). Spreadsheet development and 'what-if' analysis: Quantitative versus qualitative errors.
- Chadwick & Sue (2001). Teaching spreadsheet development using peer audit and self-audit methods for reducing errors
- O'Donnell (2001). The use of influence diagrams in the design of spreadsheet models: An experimental study
- Teo & Lee-Partridge (2001). Effects of error factors and prior incremental practice on spreadsheet error detection: An experimental study
- Kruck, Maher, & Barkhi (2003). Framework for cognitive skill acquisition and spreadsheet training
- Beaman, Waldmann, & Krueger (2005). The impact of training in financial modeling principles on the incidence of spreadsheet errors
- Benham & Giullian (2005). Reducing spreadsheet error rates
- Janvrin (2008). Detecting spreadsheet errors: An education case
- Loraas & Mueller (2008). Bridging the gap between spreadsheet use and control: An instructional case
- Barnes, Tufte, & Christensen (2009). Spreadsheet design: An optimal checklist for accountants
Publication
2017, Journal of Accounting Education, Volume 26, January, pages 127-143
Full article
Beyond the mechanics of spreadsheets: Using design instruction to address spreadsheet errors