Subscribe to our e-mail newsletters
For more info on a specific newsletter, click the title. Details will be displayed in a new window.
Data Management
Computerworld Daily News (First Look and Wrap-Up)
Computerworld Blogs Newsletter
The Weekly Top 10
More E-Mail Newsletters 
Computerworld 2007Subscribe to Computerworld
40 years of the most authoritative source of news and information for IT leaders.

Sidebar: Oops! Many spreadsheets have errors

Audits find errors in 49 out of 54 spreadsheets
Mitch Betts and Alan S. Horowitz   Today’s Top Stories    or  Other Data Mining Stories  
 

Sign up to receive Security Resource Alerts

May 24, 2004 (Computerworld) -- Washington-based Fannie Mae made a $1.2 billion accounting error last year because of what it called "honest mistakes made in a spreadsheet" used in the implementation of a new accounting standard. Toronto-based TransAlta Corp. took a $24 million charge last year after a bidding snafu caused by a cut-and-paste error in an Excel spreadsheet.
These are spine-chilling mistakes, but research indicates that many company spreadsheets have errors. Anecdotal evidence suggests that 20% to 40% of spreadsheets have errors, but recent audits of 54 spreadsheets found that 49 (or 91%) had errors, according to research by Raymond R. Panko, a professor at the University of Hawaii.
Either way, the amateur programmers who set up and use spreadsheet models are making a lot of mistakes, experts agree, in part because of a lack of training in model development and testing.
The mistakes range from mechanical errors (such as pointing to the wrong cell when entering a formula) to logic errors (such as entering the wrong formula) when setting up the spreadsheet, Panko says in a research paper. "Developers are overconfident, and policies are lax," he adds.
"Most casual enterprise users perceive data as movable from cell to cell with little unforeseen consequences," says Ed Chen, IT director at broadcaster KQED in San Francisco. "They need to be made aware of the nature of the data they are dealing with and what might happen to it when they manipulate it."
Microsoft provides a basic auditing tool in Excel, but the high risk of spreadsheet errors has spawned a tiny industry of spreadsheet auditors, add-in auditing tools and researchers. (Just type "spreadsheet errors" or "spreadsheet audit" into a Web search engine to find these resources.)
Longtime database consultant Shaku Atre cautions, "I have seen people using spreadsheets for anything and everything under the sun -- and many times they use them wrongly. Provide good training."




Print this Story Send Us Feedback E-mail this Story Digg! Digg this Story Slashdot this Story
Sidebar: Oops!
Sidebar: Easy Does It
Spreadsheet Overload?
"Enterprise search continues to lag behind commerical search because companies lack a "findability" strategy, says one researcher...." Read more...
"It's IT Blogwatch: in which we all wonder how much we get paid and Glassdoor.com helps us out. Not to..." Read more...
Read more Business Intelligence posts or See all Blogs
Microsoft promises four patches next week
Google gives away home-cooked Web application security scanner
Storm botnet stages Fourth of July attacks
More top stories...
Microsoft trumpets security additions in upcoming IE8
Apple cuts price of high-end SSD MacBook Air by $500
Ultrathin showdown: Apple MacBook Air vs. Lenovo ThinkPad X300 vs. Toshiba Portege R500
All it takes is a couple hours and about $125 to breathe new life into an old laptop. Here's how.
Is Microsoft's Golden Age over? What are Gates' most memorable quotes? Find out in Computerworld's complete coverage of the end of the Bill Gates era at Microsoft.
There are some things your CIO definitely doesn't want to hear. Also don't miss the flipside, Five things you should always tell your boss.
With its latest version, Mozilla's browser continues to raise the bar for what Web browsers should be.
Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS.
Four years from now, the IT field will be a vastly different place. Will you be ready?
All Zones
Application Performance Zone
Business Continuity Zone
Data Center Management Zone
Enterprise-Class Security Zone
The File Data Management Zone
Grid Computing on Windows Zone
Security Management Zone
ITIL Best Practices Zone
The SAS Zone
Storage Virtualization Zone
Business Intelligence and Analytics Zone

Ads by TechWords

See your link here
Speeding the time to intelligence
Get this Computerworld report free for a limited time, compliments of SAS.
Time To Intelligence -- a concept defining how long it takes to get accurate and timely information into the hands of workers who need it most. Do it slower than your competitors and your company is toast. Do it faster, you scorch them. Business Intelligence is the key to optimizing Time To Intelligence, and success there is a combination of people, policies, and technology.
Download this executive briefing download
Web Security SaaS: The Next Generation of Web Security
Download this whitepaper, free for a limited time, compliments of Webroot Software.
(Source: Webroot Software) The Web is the new threat vector of choice for hackers and cybercriminals to distribute malware and perpetrate identity theft, financial fraud, and corporate espionage. This paper outlines the challenges facing many SMBs and provides solutions for overall security effectiveness and reducing the burden on IT departments.
Download this white paper go
Long Tail Supplier Collaboration - What's In It For You?
Long Tail Supplier Collaboration - What's In It For You?
Download this webcast, free, compliments of Sterling Commerce
Go to the webcast 
White Papers
Read up on the latest ideas and technologies from companies that sell hardware, software and services.
Deploying Virtualized NetWare on Linux Whitepaper
Toward More Flexible, Next-Generation Collaboration Solutions
Driving Business Success Through Workgroup Choice and Flexibility
View more whitepapers 
SAS Information Management Kit

SAS is the leader in business intelligence and analytical software and services. Only SAS offers leading data integration, storage, analytics and business intelligence applications within a comprehensive enterprise intelligence platform. SAS gives 97 of the top 100 companies in the 2007 Fortune 500 THE POWER TO KNOW®.

Webcast: The Information Management Roadmap
Imagine high-quality data, cleansed, analyzed and delivered throughout your organization. Join Computerworld, IT visionary Thornton May and a panel of experts to learn how SAS® can help you make it happen.

View this webcast 
Research Report: Information Management Initiatives at Midsize and Large Organizations
See the top-line results of this Computerworld sponsored survey to see how IT and business leaders are handling information management implementation.

Download this report 
White Paper: Information Management: Better Information for Winning Decisions.
This white paper explains how the SAS Information Evolution Model aids companies in assessing how they use this information to make strategic decisions and drive business.

Download this white paper