Authors
H.M. Revenue & Customs Audit Service
Abstract
This audit methodology was first introduced in 1992 with the acquisition of Spreadsheet Auditor - the first standard audit tool for spreadsheets used in what was H.M. Customs & Excise.
Since that time, the complexity and functionality of spreadsheets has reached levels of sophistication that few could have imagined even 5 years ago. The consequent threat posed to businesses by such powerful "end user" applications, mainly in the hands of untrained users, is immense.
Our methodology was, therefore, substantially revised and reissued in June 1999 to coincide with the release of our newly developed spreadsheet audit tool, SpACE.
This current revision has been made in response to the experience of computer systems auditors and their trainers in H.M. Revenue and Customs using both the methodology and SpACE over the past few years.
The main changes are the simplification of the methodology into a sequence of steps for the conduct of a spreadsheet audit. It has also been reformatted into the following 3 sections reflecting its purpose as practical aide to the auditor:
- Overview of Methodology - stating the purpose of each stage, this may be used as an aide memoire by auditors.
- Commented Version - a reminder of the purpose and conduct of each stage of the audit.
- Worksheet Version - also available on disk, parts or all of which may form the basis of the auditors working papers.
The steps are now more closely aligned with the unfolding SpACE menu options and, if followed, will ensure that areas of risks are identified; evaluated; investigated if necessary; and the findings properly reported and followed up.
As such this represents the department's current statement of best practice in the audit of revenue accounting and other spreadsheets.
Sample
The better the documentation, the less scope there is for error or misunderstanding between the developer and the user.
Has the developer documented the spreadsheet, to make clear:
- What it's for.
- What it does.
- How it does it.
- What assumptions were made in its design.
- What constants are used and where they are held.
- Who developed it.
- When.
- When and how it has been changed since being brought into use.
- The presence and purpose of any macros.
Publication
2007, White paper, Version 3, September 2007
