Yesterday Protiviti issued a press release and an update to their white paper entitled Spreadsheet Risk Management: Frequently Asked Questions. In the press release, Protiviti indicated that few organizations have properly addressed the risks associated with uncontrolled spreadsheets, but are now being forced to due to potential financial losses due to errors and fraud, regulatory pressures, and increasing scrutiny from auditors.
The white paper examines the risks associated with uncontrolled spreadsheets and EUCs, cites various cases of error and fraud, presents a framework for spreadsheet control, best practices for measuring risk, and a review of available technologies.
While the white paper is spot on for the type of information companies need now – how to get started, practical advice, frameworks, best practices – it is light on promoting technology. The main goal of any spreadsheet or EUC control initiative should be to embed the controls into everyday business processes and to make them sustainable. This cannot be achieved via manual processes and policies alone. It has to be driven by technology and automated controls.
You can view the press release here and the download the FAQ white paper here.
Enjoy, and please let me know your thoughts!
Complex spreadsheets have been used extensively in mergers and acquisitions. Although spreadsheets can provide rapid and immediate results to speed due diligence efforts, the potential for error is high and left undiscovered such errors can lead to disastrous results.
Eric Perry