spreadsheet auditing
DESCRIPTION
TRANSCRIPT
Auditing Tools
Spreadsheet Auditing Tools
Spreadsheet Auditing Tools
A Strategic Approach to Improve Spreadsheet
Using Analysis Embedded Tools of Excel
ByJoselito Pérez
Auditing Tools
Spreadsheet Auditing Tools
Slide 2
Presentation Overview
A. Introduction• Overview of Auditing Tools
B. Impact• Spreadsheet errors• Productivity• Efficiency
C. Direct and Indirect Auditing
D. Embedded Tools
E. Review
A. Introduction
E. Review
D. Tools
C. Method
B. Impact
Auditing Tools
Spreadsheet Auditing Tools
Slide 3
Overview: Spreadsheet Auditing Tools
• Spreadsheets are enormously flexible and powerful tool.
• Provide backup information to present financial reports.
• Spreadsheet models with hidden errors.
A. Introduction
Auditing Tools
Spreadsheet Auditing Tools
Slide 4
Spreadsheet Errors
• Spreadsheet errors could have a significant impact on company:– Impaired management decisions.– Incorrectly stating balances and income which
could result in penalties, lost of income, adverse publicity, legal proceedings, etc.
B. Impact
Auditing Tools
Spreadsheet Auditing Tools
Slide 5
Productivity1. Automation of the review process in our
spreadsheet models, reduce the time of analyzing the data.
2. Reduce time updating information.
3. Faster data entry.
B. Impact
Auditing Tools
Spreadsheet Auditing Tools
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Efficiency1. Lower risk error.
2. Give you control of how the model operates.
3. Validate results vs. proofing results.
4. Less stress = happy people
B. Impact
Auditing Tools
Spreadsheet Auditing Tools
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Direct Method
• Direct method of auditing: is generated by the user. There are few tools that are direct method:– Auditing Toolbar– Go To Tools– Keyboard Shortcuts
C. Method
Auditing Tools
Spreadsheet Auditing Tools
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Indirect Method
• Indirect method of auditing: is perform in the background by software. As in the direct method we have a few tools:– Option set-up
– Data Validation
– Conditional Formatting
C. Method
Auditing Tools
Spreadsheet Auditing Tools
Slide 9
Auditing Toolbar
The Auditing Toolbar is one very powerful tool build-in in all Excel modules.
The toolbar comes with different icons to check errors, trace precedents and dependents, analyze formulas or simple write a comment.
The following slides will view each of the icon and their use.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
Error Checking - Checks the active worksheet for errors. If your worksheet contains errors then the Error Checking dialog box is displayed.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
Trace Precedents - Draws tracer arrows from the cells that supply values directly to the formula in the active cell. You can press this button multiple times to see additional levels.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
Remove Precedent Arrows - Removes tracer arrows from one level of dependents on the active worksheet.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 13
Auditing Toolbar
Trace Dependents - Draws a tracer arrow to the active cell from formulas that depend on the value in the active cell. You can press this button multiple times to see additional levels.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
Remove Dependent Arrows - Removes tracer arrows from one level of dependents on the active worksheet.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
Remove All Arrows - Removes all tracer arrows from the active worksheet.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 16
Auditing Toolbar
Trace Error - Traces cells with error values. If the active cell contains an error value then tracer arrows are drawn to the cells that may have caused the error.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
New Comments - Inserts a comment in the active cell.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 18
Auditing Toolbar
Circle Invalid Data - Draws red circles around any cells that contain values that are outside the limits you set by using Data Validation.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 19
Auditing Toolbar
Clear Validation Circles - Removes circles around cells that contain values outside the limits you set by selecting (Data > Validation).
D. Tools
Auditing Tools
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Auditing Toolbar
Show Watch Window - Displays the Watch Window that can be used to keep a close eye on certain formulas as you make changes to other parts of the worksheet.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Auditing Toolbar
Evaluate Formula - Displays the (Tools > Formula Auditing > Evaluate Formula) dialog box that enables you to evaluate parts of a formula.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 22
Go To Special
The (Edit > Go To) special allows you to navigate in the worksheet in many areas making it useful to find key information in the workbook. This makes it a very useful tool.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 23
Keyboard Shortcuts
(Ctrl + [ )—to select the cells that are precedents of the active cell.
(Ctrl + Shift + [ )—Selects all the cells that are directly or indirectly referred to by the formula in the active cell.
(Ctrl + Shift + ] )—Selects all the cells that directly or indirectly refer to the active cell.
(F5)—Opens Go To dialogue box.
(`)—Show the formula in the selected cell.
(Shift + F2) – edit or create a new comment.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Checking Option Setup• From the Menu Bar go to Tools, then select
Options.
In the View tab, control what you need to see. A too crowded window is distracting. You need a balance windows that allow you to see data and easy navigation.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Checking Option Setup• From the Menu Bar go to Tools, then select
Options.
In the Calculation tab, here is how the calculations are performed according to preference.
D. Tools
Auditing Tools
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Checking Option Setup• From the Menu Bar go to Tools, then select
Options.
In the Edit tab, are a few data entry options here are a few to watch for.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 27
Checking Option Setup• From the Menu Bar go to Tools, then select
Options.
In the General tab, we deal the interaction with the application.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 28
Checking Option Setup• From the Menu Bar go to Tools, then select
Options.
In the Error Checking tab, are a few data entry options here are a few to watch for.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 29
Data Validation
• Data validation is a tool that helps you control the kind of information that is entered in your worksheet. With data validation, you can:
--provide users with a list of choices.
--restrict entries to a specific type or size.
--create custom settings.
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 30
Conditional Formatting
What is Conditional Formatting? — Conditional formatting allows you to set rules for cell formatting. If the rules (conditions) are met, then the formatting is applied. You can have up to 3 rules in a cell.
There are many different neat thing that one can do with Conditional Formatting. We will explore a few basic conditions and conditions base on a formula..
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
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Conditional Formatting
Checking for Error•Select the cells you want to apply the conditional formatting to, in this case "B2:B8".•Press (Format > Conditional Formatting) to display the Conditional Formatting dialog box.• Select the "Formula is" in the first drop-down list and enter the formula "=ISERROR($B$2)".
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 32
Conditional Formatting
Highlight Duplicate Entries •Select the cells you want to apply the conditional formatting to, in this case "B2:B13".•From the Conditional Formatting dialog box, select the "Formula is" in the first drop-down list and enter the formula “=COUNTIF($B$2:$B$13,B2)>1".•Click on the Format, Patterns tab and select the light gray.
D. Tools
Auditing Tools
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Slide 33
Conditional Formatting
Useful Formulas Shading Alternate Rows =MOD(ROW(),2)=0 Find Today's Date A1=TODAY() Shade any Blank Cells =ISBLANK(A1) Cells Containing Spaces =LEN(TRIM(A1))-LEN(SUBSTITUTE(A1," ",""))>0 Cells Containing a Particular Character =LEN(TRIM(A1))-LEN(SUBSTITUTE(A1,"R",""))>0
D. Tools
Auditing Tools
Spreadsheet Auditing Tools
Slide 34
Review• We learned to use the following tools:
– Auditing Tools – to trace and review formulas– Go To Tools – as a mean to navigate to specific
areas in the workbook– Keyboard Shortcuts – quick access to Auditing
tools– Option set-up – know and control what happen in
your desktop– Data Validation – restrict data and highlight errors– Conditional Formatting – highlight errors and
emphasis specific data.
E. Review
Auditing Tools
Spreadsheet Auditing Tools
Slide 35