Authors
Anthony Berglas & Peter Hoare
Abstract
Spreadsheets have become an essential tool for performing financial modeling and analysis because they enable powerful emulation of real-world business opportunities. This enables comprehensive models to be built for financial forecasting using business drivers such as market share and production yields.
Survey data show that spreadsheet errors are common. Overconfidence is perhaps the most serious aspect of spreadsheet errors because it reduces the extent to which people validate their models before using them to make important decisions. These errors could cost companies millions of dollars in new projects and other business decisions. Appropriate responses to these risks are discussed.
Sample
The tool adds annotations to the spreadsheet, including the cell formula. The dots and lines show how the formula has been copied throughout the spreadsheet.
Publication
1999, Financial Management, Volume 77, Issue 7, pages 46-47
Full article
Not available
