To this end, documentation is a best practice to explain how spreadsheets are used. Therefore, the style, content, and accountability for spreadsheets should be documented in the organization's policies and procedures or in the spreadsheet used. If the policies and procedures to mitigate spreadsheet risks are inadequate, errors will become more common and lack of consistency will show up in internal control audit reports. Risk 2: Lack of Guidelines for Spreadsheet Preparation There is also a variety of software for auditing spreadsheets that may be appropriate for widespread use in an organization. In addition to free Excel online training from Microsoft's Web site or free Lotus 1-2-3 training from IBM's site, the American Institute of Certified Public Accountants' Journal of Accountancy has a special section each month devoted to using technology tools.
For instance, long-term learning plans that incorporate spreadsheet training will help to make sure users are up-to-date with the latest version of the spreadsheet in use.
Spreadsheet training for all auditors is one way to help achieve internal control.
The Committee of Sponsoring Organizations of the Treadway Commission's Internal Control–Integrated Framework requires a commitment to competence, which is an important aspect of internal control. In fact, lack of adequate training will result in poor to mediocre spreadsheet results, such as improper referencing, linking to other spreadsheets, or using inaccurate formulas to master complex calculations. Common Spreadsheet Controls Spreadsheet training is not just for beginner auditors. Therefore, it is important for auditors to be aware of the different kinds of risks associated with spreadsheet use, five of which are explained below. While spreadsheets are much like the lens of a camera through which auditors can view an organization's data, an auditor's assessment of the information in the spreadsheet might be skewed if the lens is dirty or slightly flawed. However, there are good reasons for concern. Some internal auditors may believe there is little reason for concern because they have used the same spreadsheet software for many years. S preadsheets are seldom a cause for concern or suspicion during internal audits, even though they should be - spreadsheets can be easily changed, may lack certain internal control activities, and are vulnerable to human error.
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