Authors
Ben G. Rittweger & Eoin Langan
Abstract
The paper examines in the context of financial reporting, the controls that organisations have in place to manage spreadsheet risk and errors. There has been widespread research conducted in this area, both in Ireland and internationally.
This paper describes a study involving 19 participants (2 case studies and 17 by survey) from Ireland. Three areas are examined; firstly, the extent of spreadsheet usage, secondly, the level of complexity employed in spreadsheets, and finally, the controls in place regarding spreadsheets.
The findings support previous findings of Panko (1998), that errors occur frequently in spreadsheets and that there is little or unenforced controls employed, however this research finds that attitudes are changing with regard to spreadsheet risk and that one organisation is implementing a comprehensive project regarding policies on the development and control of spreadsheets.
Further research could be undertaken in the future to examine the development of a "best practice model" both for the reduction in errors and to minimise the risk in spreadsheet usage.
Sample
Spreadsheets are used 65% all of the time in financial reporting and management accounting. They are also relied on in other functions, such as decision making and operations.
Publication
2010, EuSpRIG
