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30 Jun 2011
FEARS ABOUT potential errors in spreadsheets have led the ICAEW to launch a troubleshooting service for its members.
There is growing concern that accountants ill at ease with computer spreadsheets could be inadvertently preparing reports containing errors.
Further reading
In some cases, the consequences of this can be huge. In 2003, US mortgage giant Fannie Mae issued a third-quarter report that had $1.2bn (£700m) of discrepancies. The report had to be reissued amid falling shareholder confidence.
In response, the institute has launched an online Excel Community to help reduce the risk of such spreadsheet errors among its members and the possibility of incorrect management and statutory reports being issued.
Richard Anning, head of the initiative, said: "The creation of the Excel Community is in response to the growing need to help accountants understand the risks involved in using and relying on spreadsheets".
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Spreadsheets have been around for 30 years.
Spreadsheets have been around for 30 years. They were the "killer application" that lauched the popularity of the IBM-PC. I've been using them for 25 years and the necessity for audit of mission critical models is well known. I'm amazed it's taken the ICAEW so long to catch up.
Posted by: Phil Smith, 30 Jun 2011 | 17:58
Spreadsheet familiarity
I think that the problem is the other way round - we are too familiar with spreadsheets. As Phil says they have been around for over 25 years. Many organisations have developed excel spreadsheets over a number of years for reporting purposes which have been added to and improved so that they have become so large that no individual understands the whole picture. If there is a rogue formula somewhere, it can change the whole calculation and never get picked up.
Posted by: PKIB, 08 Jul 2011 | 14:36
Spreadsheet errors spark fears ...
This is all very well, but many of us prefer to use Open Office, Gnumeric, or Lotus and do not use Micosoft's software.
Posted by: Jas., 14 Jul 2011 | 17:35
Guns don't kill, Humans do
Guns don't kill, Humans do. I think spreadsheets don't make mistakes, Humans do. So we are looking at the problem the wrong way round. I beleive that companies should have a competency test for all Excel users before they let them loose on corp spreadsheets. Much like having a driving test before you are allowed to drive a car.Or having a professional qualification before you can practice accountancy.
Companies need to couple this with a Spreadsheet Code, much like the Highway Code.
Posted by: K K Tang, 30 Sep 2011 | 04:54