Cell lockdown: spreadsheets are here to stay, so get a grip on their security.

• Author: Chiu, George
• Position: Softwaretips

eyen with the advances in enterprise resource management systems and business intelligence tools. managers today still run their organizations by spreadsheets. Be it to maintain a tracking list, manage budgets and forecasts, perform complex data analysis or a multitude of other tasks. spreadsheets are the tool of choice. Popular spreadsheet applications, such as Microsoft's Excel, have powerful built-in formulas, are easy to use and readable by mainstream computing systems. It's no wonder CPAs can't live without them.

However, enter "spreadsheet errors" in your favorite search engine and you'll see millions or results. just recently, companies as big as AstraZeneca had to reiterate its published financial Forecasts due to an erroneous spreadsheet. Such blunders are unfortunate and embarrassing, but riot unusual.

Most companies do not treat spreadsheets with the same care as they do with other information technology applications. Unlike many IT general computing systems, spreadsheets often have little to no input and access controls. and are typically developed by end users and saved on unsecured networks or local Or removable storage medias. which makes them more difficult to control--and more susceptible to errors.

Here's how. to get a grip on spreadsheets.

Types of Spreadsheet Errors

The first step to keeping spreadsheets under control is to understand die types of' common spreadsheet errors. which can generally lw characterized into direr categories:

* Input errors usually stem from data entry mistakes and inaccurate references to other cells or spreadsheets.

* Logic errors are the result or using the wrong formulas or misuse of the Functional inputs.

* Interface errors occur when incomplete or inaccurate data is imported from or exported to other applications.

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Inventory the Characteristics of Spreadsheets

The next step is to have an inventory of spreadsheets and document key characteristics of' each. In general, spreadsheets are used for three main purposes:

* Operations: Spreadsheets that support business processes to track and monitor a workflow, such as a listing of assets under construction.

* Analytical: Spreadsheets that perform analysis and support management decisions, such as an analysis of return on investment for an asset purchase.

* Financial: Spreadsheets that directly impact transactions put into the financial statements, such as a fixed assets including costs. depreciation amounts and hook values.

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