Authors
Diane Janvrin
Abstract
In the past two decades, computing applications developed by non-system professionals have increased dramatically throughout the professional accounting and business community.
Unfortunately, prior research indicates that many end-user computing applications such as spreadsheets contain difficult-to-detect errors. Relying on these error-prone applications, professionals may make inappropriate decisions that can negatively impact financial results.
This case enhances students' understanding of end-user computing risk by illustrating the difficulty of detecting errors in spreadsheets. Furthermore, this case helps students improve their ability to detect spreadsheet errors.
Sample
Sample questions to facilitate spreadsheet error detection.
Spreadsheet objective:
- Does the spreadsheet adequately meet the problem requirement(s)?
Spreadsheet design:
- Does the spreadsheet include adequate documentation for novice users?
- Does the spreadsheet separate inputs, calculations, and outputs?
- Is the calculation and output sections linked via formulas rather than values to the input section? (i.e., no hardcoded values in the calculation and output sections)
- Is the spreadsheet designed so that new parameters can be added when needed without negatively impacting accuracy?
- Does spreadsheet contain hidden worksheets, rows, and/or columns?
Input set-up:
- Is all of the important input included?
- What additional input may be needed to meet the problem requirement(s)?
- Is the input accurate based upon the available resources?
- Does the spreadsheet document the source of each input?
- What happens when you change input? Will the output change appropriately?
Calculation review:
- Are calculations accurate?
- Are calculations logical? (i.e., beginning cash balance for each month should not be summed to determine the beginning cash balance for the quarter)
- Are calculations easy to follow? (i.e., calculations are shown in multiple rows rather than cramming them into one cell)
- Do sum calculations include all rows/columns needed?
- Are control totals included?
- Are named cells and ranges properly specified?
Output review:
- Does the output make sense?
- Is the output in a format that is easy for various decision makers to use?
Publication
2008, Issues in Accounting Education, Volume 23, Number 3, August, pages 435-454
