Authors
Alyssa G. Martin
Abstract
Without careful scrutiny, spreadsheets can contribute to financial reporting misstatements.
Sample
Spreadsheet programs lack the embedded logic and data controls found in other financial applications that help prevent errors and discrepancies during the financial reporting process:
- Macro use presents possibilities for error. Well-designed and correctly used, macros can save considerable time and reduce entry mistakes; however, if macros are poorly developed or applied inappropriately, they can produce inaccurate results.
- Entering a formula for cell calculations incorrectly will likewise generate errors.
- Linking allows users to embed data into a spreadsheet from another spreadsheet or other application file. Ideally, links automatically update all spreadsheets connected to that source file when changes are made to it. However, links can break, preventing all spreadsheets from being updated correctly. Links also can enable incorrect data to spread quickly across multiple spreadsheets.
- Collaborating and consolidating data from many disparate spreadsheets and users presents further complications.
Publication
2005, Internal Auditor, December, pages 31-35
