Authors
Lawrence Beitman
Abstract
Many executives tend to accept electronic spreadsheet printouts as "gospel" without questioning their accuracy or validity. Errors in the data and the calculations do occur. Furthermore, since the value of one spreadsheet cell is often dependent on the value of other cells; one incorrect number can create errors in many numbers.
Errors in electronic spreadsheets can prove to be very costly. Organizations should establish procedures and guidelines that govern the use of electronic spreadsheets. All spreadsheets need to be checked and, possibly, rechecked.
The following checklist is designed to assist users in developing and reviewing spreadsheet programs. The checklist can also help auditors review the use of electronic spreadsheets and their output.
Sample
Development checklist:
- Develop each spreadsheet as a series of small modules or sections.
- Use a separate area to input all base figures, opening balances, assumptions, and other necessary data.
- Format the spreadsheet so that all assumptions stand out from the "hard" data (e.g., double underline assumptions).
- Construct separate spreadsheet areas for input data edit criteria and for data output.
- Keep all input data separate from calculations.
- Use meaningful names for spreadsheet cells, columns, and rows.
- Avoid using "zeros" in the empty data cells unless they are clearly required to indicate a no-value condition.
- If possible, use the cell- or range-protection feature in the spreadsheet software to prevent an accidental change of the data.
- Make the maximum possible use of hash totals, crossfooting checks, and "zero-balancing" within all spreadsheet programs.
Testing checklist:
- Test each module or section of the spreadsheet before feeding the results into the next section.
- Use simple and predictable data for all tests.
Review checklist:
- Review all input data for reasonableness.
- Print out each formula.
- Perform a manual verification of the accuracy and correctness of each spreadsheet formula.
- Consider using a program (such as Spreadsheet Auditor) that prints spreadsheet formulas in their correct cell-by-cell format.
Documentation checklist:
- Document each spreadsheet thoroughly. Include the spreadsheet logic and formulas. Provide a brief summary for each program.
- Date and number all versions of each spreadsheet.
- Date and sign each spreadsheet printout each time a recalculation is done.
- Label all files. Use meaningful names and version numbers.
- Label each spreadsheet with the title, the author's name, and the file name under which the spreadsheet model is saved.
- Do not throw out the "old" data. Either move or copy it to an out-of-the-way section of the spreadsheet, or save it under another file name or version number.
Publication
1986, EDPACS: The EDP Audit, Control, and Security Newsletter, Volume 13, number 10, April, pages 8-9
Full article
Not available
