Unchecked Use of Spreadsheets Can Lead to Major Accounting and Financial Reporting Problems; New Protiviti Guide Helps Companies

Continued workforce reductions also contribute to increased risk 


MENLO PARK, Calif., June 29  /PRNewswire/ -- There have been many cases in recent years where multimillion dollar reporting errors, corporate fraud, and countless material weakness and deficiency filings can be attributed to the misuse of one well-known business tool - a spreadsheet used without the proper controls. Currently relied upon for everything from simple data analysis to complex financial models, spreadsheets have been stretched far beyond their originally intended use, triggering problems ranging from minor calculation errors to bad decision-making. Protiviti Inc., a business consulting and internal audit firm, is helping companies to effectively mitigate spreadsheet risks with its new guide: Spreadsheet Risk Management: Frequently Asked Questions.

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High profile spreadsheet-related errors, frequently uncovered during Sarbanes Oxley or other compliance-related activities, have resulted in complex regulation and spurred more businesses to assess how they rely on spreadsheets and where they have risks or weaknesses that need to be addressed.

"Potential financial losses due to errors and fraud, regulatory pressure and increasing focus from auditors are forcing organizations to address spreadsheet risk management, though we've found that few have properly assessed this enterprise issue or know how to fix it," said Kurt Underwood, managing director and global leader of Protiviti's Information Technology Effectiveness and Control practice. "If spreadsheets aren't managed properly and employees aren't trained sufficiently, there is greater risk of significant financial losses or information leakage at a time when virtually every business is seeking to streamline costs as much as possible. In addition, workforce reductions are creating shifting job responsibilities and increased workloads that will likely increase this risk even more. Protiviti developed this practical FAQ guide to assist companies in managing spreadsheet risk before they experience significant financial loss and damaged reputations."

In its resource guide, Protiviti takes readers through all aspects of spreadsheet risk - from a high-level situation overview to training and awareness. Sections include:

  --  Executive ownership and governance
  --  Creating a library of critical spreadsheets
  --  Implementing a spreadsheet control framework
  --  Assessing spreadsheet controls and current risk exposure
  --  Gaining assurance over critical spreadsheets
  --  Spreadsheet risk indicators and reporting
  --  Resources
  --  Technology enabling effective spreadsheet risk management




"Spreadsheets were never designed to be enterprise-level applications," said Michael Schultz, a Protiviti managing director in the firm's Information Technology Effectiveness and Control practice. "As spreadsheets become more complex and are used to support critical business processes in organizations, their use is also more prone to error. Vigilant risk management is required to avoid embarrassing and potentially costly financial reporting or key business decision-making errors."

To obtain a complimentary copy of Protiviti's Spreadsheet Risk Management: Frequently Asked Questions, please visit http://www.protiviti.com/go/spreadsheetfaqs.

About Protiviti

Protiviti (http://www.protiviti.com/) is a global business consulting and internal audit firm composed of experts specializing in risk, advisory and transaction services. The firm helps solve problems in finance and transactions, operations, technology, litigation, governance, risk, and compliance. Protiviti's highly trained, results-oriented professionals provide a unique perspective on a wide range of critical business issues for clients in the Americas, Asia-Pacific, Europe and the Middle East.

Protiviti has more than 60 locations worldwide and is a wholly owned subsidiary of Robert Half International Inc. (NYSE:RHI). Founded in 1948, Robert Half International is a member of the S&P 500 index.

Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services. 

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DATASOURCE: Protiviti



CONTACT:  Kathy Keller of Protiviti, [phone],





Web Site:  http://www.protiviti.com/ 

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