Spreadsheet Risk Research Results
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The adjacent table show the results of some spreadsheet research
that has been conducted over the years. This information is available
at
http://panko.shidler.hawaii.edu/SSR/index.htm
In our personal experience we have yet to come across a
spreadsheet model with no significant errors. |
Said another way, our experience
indicates that 100% of spreadsheet models have significant errors.
If you can't believe that why not watch some video clips on how
spreadsheet errors occur on
http://www.auditexcel.co.za/errors.html .
Sarbanes Oxley has further highlighted this issue of spreadsheets
and it is becoming mandatory to control important spreadsheets as if
they were formal IT systems (documentation, testing, backups,
version control etc).
One way to address the spreadsheet risks is to use a tool like
Spreadsheet Professional (
http://www.auditexcel.co.za/spreadsheet.html ) to find the
spreadsheet errors.
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Researcher and criteria
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# Spreadsheets Audited
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% with Errors
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| At least a 5% error |
Coopers & Lybrand
|
23
|
91%
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| Major Errors exist |
KPMG
|
22 |
91% |
| Serious Errors exist |
| Davies & Ikin |
19 |
21% |
| Errors requiring extra tax payments |
| Butler |
273 |
11% |
Butler 2000
|
7 |
86% |
| Other studies |
Cragg & King
|
20 |
25% |
Hicks
|
1 |
100% |
Lukasic
|
2 |
100% |
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