Spreadsheet Fraud

To any company executive or business owner, the mere possibility of fraud can be enough to send alarm bells ringing – for good reason. In a prolonged recession, the last thing investors would want to discover is a huge, gaping hole where supposedly a neat profit should have been. Also to find out that such loss was brought about by deliberately falsified accounting and poor spreadsheet controls only makes the situation even more regrettable.

Why?

Because these losses would not have occurred had there been a stronger risk management program in place and more stringent quality control on critical data to begin with.

But given the nature of a spreadsheet system i.e. its sheer flexibility and easy accessibility, plus the fact that they were never intended to be enterprise-level tools, there are no hard and fast rules for auditing spreadsheets. Also because of the lack of internal controls for end user computing (EUC) applications, in this case spreadsheets, you can’t expect these systems to yield consistently accurate results.

In fact, most managers assume that major spreadsheet errors should result in figures that are blatantly out of touch with how things stand in the real world, making these errors easily detectable.

Well they assumed wrong. You’ll find cases where the losses ran to millions of dollars without anyone being the wiser.

In instances of fraud, the problem becomes more complicated as these errors are deliberately hidden and cleverly disguised, perhaps one erroneous cell at a time. Even if these cover-ups started out with smaller figures that may have had negligible impact on a company?s operation, the cumulative costs of these ?insignificant? errors multiply exponentially as the spreadsheets are reused and utilised as bases for other related reports.

While there is no generally accepted definition of the term ?spreadsheet fraud?, its quite easy to identify one when a case crops up. Fraud arising from spreadsheets are typically characterised by:

Fallacious inputs – correct figures are deliberately replaced with false values.

Erroneous outputs owing to data alteration – hyperlinks are linking to the wrong spreadsheets or cells; use of macros or special lines of code which are understandable only to the person who developed the code.

Concealment of critical information – can be done with easy ?tweaks? such as hidden rows and columns, using the same colour for both the font and the background, or hard coding additional values into a cell.

There is nothing really highly-sophisticated or technical in any of these methodologies. But without internal spreadsheet controls in place, it would take a discerning eye and a thorough review to catch the inconsistencies contained in a spreadsheet fraught with errors. Also, if these errors are knowingly placed there, the chances of finding them are close to nil.

Learn more about our server application solutions and discover a better way to protect your company from spreadsheet fraud.

More Spreadsheet Blogs


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Top 10 Disadvantages of Spreadsheets


Disadvantages of Spreadsheets – obstacles to compliance in the Healthcare Industry


How Internal Auditors can win the War against Spreadsheet Fraud


Spreadsheet Reporting – No Room in your company in an age of Business Intelligence


Still looking for a Way to Consolidate Excel Spreadsheets?


Disadvantages of Spreadsheets


Spreadsheet woes – ill equipped for an Agile Business Environment


Spreadsheet Fraud


Spreadsheet Woes – Limited features for easy adoption of a control framework


Spreadsheet woes – Burden in SOX Compliance and other Regulations


Spreadsheet Risk Issues


Server Application Solutions – Don’t let Spreadsheets hold your Business back


Why Spreadsheets can send the pillars of Solvency II crashing down

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Outsourcing

Are you ready to outsource? Do you even need to outsource? We’ll help you answer those and other questions regarding outsourcing and your company.

Once we’ve determined that outsourcing will render your organisation more focused on your core competencies, more cost-effective, and more flexible, we’ll offer you the full spectrum of our services. Our specialists can assist you in every stage of the entire outsourcing life-cycle.

Starting from evaluating what can be outsourced, through finding the right outsourcing service provider, building the contract and agreements, getting everything in place, and managing the outsourcing relationship – we’ll be with you every step of the way.

Learn more about some of the outsourcing services we offer:

Outsourcing Contracts and Agreements

When an outsourcing project fails, both customer and service provider are quick to put the blame on the other party. But in most cases, the actual culprit was really just sitting there since day one – a poorly planned and implemented agreement.

We understand how costly and disruptive a failed outsourcing project can be for your business. That is why we put utmost attention to each contract and SLA (Service Level Agreement) that our customers enter into. This always reduces the likelihood of having unmet expectations, one of the major reasons why some outsourcing relationships fail.

We make sure that each agreement is fair, not only for our customers but also for the service providers themselves. Why? Because a disadvantaged provider will most likely end up delivering poor service as an offshoot of efforts to improve its profitability and ROI.

To accomplish this, we’ll thoroughly assess the infrastructure, resources, and expertise of your potential service provider to ensure they have the capability to meet your expectations. We’ll also make sure that their expectations are realistic and clear to you as well.

Here’s what you can expect from us when we start managing your outsourcing contracts and agreements:

  • A thorough assessment of your specific needs and the service provider’s profile to determine whether you have the right match before proceeding with any agreement.
  • Professional assistance when the time comes for you to discuss the scope of work, expected service levels, and when negotiating for appropriate pricing. We’ll also help you set up provisions for possible changes in the scope later on.
  • Expert counsel during drafting and finalisation of the contract and Service Level Agreements. Whenever applicable, we’ll help you propose penalties whenever service levels are not met and rewards when they are exceeded.
  • Regular reviews to determine whether everything agreed upon in the past, like pricing and service levels, are still realistic or competitive enough in view of current technological advancements and the prevailing social and economic environment.
  • Mediation expertise whenever the outsourcing project appears to be falling apart. We’ll work with you and the service provider to resolve conflicts and avoid the expensive exercise of having to terminate the contract. But if the best solution is to part ways, we’ll make sure you make an exit with the least disruption, missed opportunities and financial loss.

Application Outsourcing

I’m sure you’ve come to realise that to gain competitive advantage these days, you really need to invest in IT applications.

There are applications for enhancing your customer relationships, speeding up production, streamlining processes, advancing collaboration, protecting your systems from malware and many more. Selecting the right application, testing it, implementing it into your system, and then managing it can deviate resources which would have otherwise been used in other areas to build business value, increase profits, and enhance innovation.

Wouldn’t it be nice to unload yourself of the management processes which usually accompany IT applications? Actually, you can – through application outsourcing. Application outsourcing providers possess the expertise to either partially or fully assume responsibility of your IT applications.

Our job is to see to it that you link up with the provider who can best answer your needs. The overall proficiency of these providers spans both proprietary and opensource solutions, allowing them to cater to a wide range of preferences and budgetary limits. At the very least, they can provide professional support for well established applications.

If needed, they can develop applications for your organisation, taking charge of every step in the system development life-cycle: starting from system initiation, requirements analysis, through design, construction, acceptance and eventually to implementation.

Here are some of the benefits you can enjoy once we start managing your application outsourcing initiatives:

  • Freedom from time-consuming tasks such as installations, upgrades, configurations and repairs.
  • Reduced total cost of ownership (TCO).
  • 24/7 support from well-trained personnel. This can substantially cut downtimes caused by inexperienced troubleshooting.
  • The option to have your applications housed in more secure and reliable environments with much higher availability and much lower planned/unplanned downtimes.
  • Dedicated specialists who can focus on providing better regulatory compliance and risk mitigation initiatives.

Infrastructure Outsourcing

Keeping up with the competition nowadays usually requires technological advancements as well as the capability to manage and maintain the infrastructure that has to support them. These undertakings can suck your resources dry.

If you’re looking to reduce costs even while improving the performance of your networks, servers, databases, firewalls, desktops and mobile devices, you might want to consider IT infrastructure outsourcing among your top options. Infrastructure outsourcing service providers have the resources dedicated to a stable, secure, scalable and always available IT infrastructure.

Typical service provider facilities include data centrers equipped with high-speed networks, reliable power, dependable security, as well as provisions for upgrades, consolidation, disaster recovery, or even business continuity.

These providers employ specialists and staff who can manage and maintain all of these for you. While your provider juggles your core IT-related tasks, you can keep your eye on the ball and refocus on your company’s business goals.

Here are some of the benefits you can enjoy out of infrastructure outsourcing:

  • Freedom from time-consuming tasks such as installations, upgrades, configurations and repairs.
  • Since service providers, who are expected to have better horizontal and vertical scalability, will deal with the technological intricacies, your company’s strategic development initiatives can proceed unhampered.
  • Greatly reduced electricity expenses as a result of consolidation.
  • Easier, faster, cheaper, and more reliable disaster-recovery solutions through virtualisation.
  • Lesser risks of disruptions caused by power outages, cyber attacks, or Internet connection downtimes.

Business Process Outsourcing

With the sheer number of business processes your company has to attend to, it wouldn’t be surprising if you rarely have room to innovate.

Through business process outsourcing, we can free a considerable part of your financial and manpower resources which are currently focused on routine activities. With more resources to drive innovative initiatives, you’ll be able to accelerate production, improve customer service, enhance overall business value, and arrive at a stronger bottom line.

Some of the business processes that may be outsourced include data entry, finance and accounting, form processing, procurement, and HR, among others. If you’re interested in finding answers to the what, how, who, and where of BPO, specific to your organisation, we’ll be happy to enlighten you.

Here are some of the benefits you can enjoy once we start managing your BPO initiatives:

  • Professional guidance to ensure that your BPO undertakings will really result in substantial savings and significant improvements to your organisation’s business value.
  • Careful monitoring of service levels to ensure faster turnaround, accurate data, and high quality outputs.
  • Expert evaluation of information handling processes to guarantee full confidentiality.
  • Professional and unbiased management dedicated to establishing a strong, reliable, and fruitful relationship between you and your provider.
Why integrating your Field Service Management with IoT Applications makes sense

Your customers want a smooth experience when hiring your services. Whether there are pests that have run amok in their homes and you have been called in to exterminate them, there is a leak in the pipes and your plumbing repair business is the go-to for repairs, you’re in charge of a cleaning business with clients spanning across the residential and commercial niches, or even a locksmith making new installations and providing aftercare for their clients ? it is vital to make the process as hassle-free as possible for your customer. The priority is getting the job done in time, and to quality standards. On the other hand, your mobile workers need access to complete and accurate data to approach the task more proactively, get it done right, and increase the rate of first-time fixes.

When you have multiple clients and a huge workforce, things can get messy with all the paperwork involved. Preparing documents and reports, keying in the data, keeping track of your mobile employees, following up on current jobs and scheduling new appointments ? the workload can put a strain on your staff. Field service scheduling software like FieldElite come in to keep your central office staff abreast with all customer details, sending alerts when new issues arise. These are then relayed to the appropriate technician for the situation to be taken care of at the earliest possible time ? directing the right employee to the customer based on the skill-set availability and location. While field service job management software, by itself, is a powerful solution, you can crank things up a notch by having a system that integrates IoT into its operations.

Powering Field Service Scheduling Software Systems With IoT

FSM gives maintenance firms, distributors, manufacturers and other service businesses an interactive platform that optimises the workflow. From the customers booking maintenance work, office staff tracking operations right from their desk, workers interacting with it while on-ground through the mobile app, to the billing and invoicing ? it is all handled through the same system. IoT applications can boost this becoming a critical tool to show the field managers about the precise locations where attention is needed, for accurate worker and job scheduling and improved customer satisfaction. What if you could also have features like auto-scheduling coming on board? Let’s delve deeper into what it means for your FSM system.

Benefits Of Using Service Management Software With IoT Solutions

Its impact of IoT on field management is seen in the transformation of maintenance data into proactive service actions. Research by Gartner shows that in 2020 there will be over 20 billion connected devices, making the reach of IoT really vast. This will fuel the field management industry, unlocking more potential with the mobile workers interacting in real-time with their equipment and headquarters. This speeds up response time to service requests and transforms interoperability across the different devices.

???????? All-round access

The interaction with IoT benefits the technicians, managers, and customers themselves. For instance, while the worker on ground interacts with the FieldElite mobile app, the office staff at headquarters will be engaging them via browser on their smart devices, and even the client gets access to the system through the customer portal.

???????? Linking your different business operations

It doesn’t stop there. Integrating the mobile service management software to the IoT facilitates inventory management, automobile tracking, and even automates accounting, invoicing, and other internal processes of the business, giving you more visibility over your field assets and operations. Here, the sensors that have been enabled in the network will notify you of damaged equipment, and go further to route and dispatch the technician who is most suited to go on-site and repair it.

???????? Nip things in the bud ? A proactive approach

Updates from sensors on the remote equipment are sent over a dedicated network. This is intelligently interpreted by the IoT platform to decide the next course of action, depending on a predefined set of rules. This course of action can be assigning and dispatching the technician through the FieldElite app to fix the equipment before permanent damage occurs. This whole process is automatic, shifting the company from a reactive mode of operations to a proactive and preventative model, resulting in better utilisation of assets.

???????? Minimise time wastage

Less time is spent going checking for flaws in the systems. Take management at a wastewater treatment plant for instance. Simply place IoT sensors on the different pumps, mortars and valves to give you this data. In case of leaks or damage, the appropriate operator is alerted, taking away the need for manual monitoring. Monitoring is done remotely. Hazardous situations such as in the oil and gas industry where workers are faced with issues like flare stacks are handled better, where the IoT sensors minimise downtime and ensure that only necessary visits to the plat equipment are done.

???????? Interactions at the palm of your hand

The field service workers are also equipped with effective communications through aspects like the chat feature on the mobile app, and reporting abilities where they can make notes, take photos and relay this to the headquarters during the course of the job. Information on the system is readily available to the customer and future technicians who will be handling jobs at the facility.

How does the FSM work with other systems? FieldElite’s core role is to manage the mobile workforce. How do you keep track of the sensors of the different equipment, in order to know when maintenance is needed?

Enter ecoVaro: IoT In Energy Management

The 2018-2025 Global Building Energy Management System Analysis and Forecast showed energy consumption in residential buildings accounts for close to 40% of the world’s energy consumption.? Commercial buildings like shopping malls, hospitals, retail stores and hotels take 30%. IoT tools aid in collecting and analysing the real-time data consumption in these falsities, to improve maintenance and reduce down times. It’s a holistic view that is achieved through a network of smart devices monitoring the ventilation, humidity, air-conditioning and lighting systems.

Home automation tools like smart thermostats and bulbs are already becoming popular. Here, they bring savings to the consumers without them having to use up much effort. For broader energy management, these systems will include units like sensors, controls, meters, data analytics tools, and user-friendly applications that the consumers access all this from. It cuts across the board, from households and commercial establishments, to utility firms and government bodies keen on effectively monitoring and managing their energy resources. Industrial and commercial users need data analytics tools to maximise their productivity and reduce costs, while residents in households want to reduce their monthly bills and take a more proactive role in their energy management.

From Smart Devices To Accurate Loggers

The first step in saving energy is cutting down wastage. Smart light, humidity, temperature and air conditioning controls come in to maintain optimal indoor conditions. Lighting units, smart thermostats, sensor-based HVAC control systems are part of the IoT, taking centre stage in automatically maintaining the perfect indoor environment that will keep the building?s energy use at optimum levels. They have been designed with different sensors that check the humidity, light, motion and even CO2 levels, dynamically adjusting the conditions in the facility. Here, you have situations like smart lights dimming when there is more daylight getting into the room, and then automatically turning off when people leave the room. The smart thermostats can precool the indoor space before the day gets warmer, so that during that scorching midday sun there will be less energy spent by the HVCA to bring down the heat levels.

The whole set up ? from the LED lights adjusting to user preferences and routines, learning thermostats that reduce consumption during peak load times, sensors and data analytics that give the user more control over their consumption, creates a smart energy infrastructure, be it in homes or industrial spaces, from retail stores and factories, to entire cities. This is all geared at cutting down energy costs, with the systems automatically adjusting the building?s lighting, temperature and ventilation, to reduce the energy consumption without compromising the comfort of the building?s occupants. LEED bulbs already record 20% lower maintenance costs than the typical commercial buildings.

Adopting IoT Applications For Your EMS System

How can you take advantage of this? With the EMS loggers, you monitor your facility’s consummation in real-time. Platforms like ecoVaro enable both the utility companies and end-users to access this data. The utility firms will be in a position to tailor the power supply in response to changing demand and also adjust their pricing. The end-users, on the other hand, will be in a position to control their usage at a granular level ? responding to changing environmental conditions, power consumption, and reducing energy waste.

There are also those appliances that come with sensors, from boilers in the household, to heavy production machinery in industries. The EMS systems allow you to continuously monitor the load on the sensor-enabled assets, predict when overheating will occur and pinpoint risks of outages or damage on the line. Maintenance can then be immediately carried out to vent damages to the equipment. That way components like motors are protected from damages that would have ended up costing the firm lots of funds to replace. The data analytics from the EMS platforms enable the energy manager to strike that balance to optimise performance and reduce wear, thus prolonging the life of the equipment.

Even the heavy hitters in the energy sector get to benefit from the IoT. Take power production for instance. When you’re dealing with stations, solar farms and wind fields ? as they provide that much-needed power, they also consume energy and need plenty of maintenance. These are resource-heavy stations and as a manager, you want to keep a close eye on things. This involves a complex approach, from the sensors at the facilities, data analytics, to predictive maintenance. EMS software comes in to continuously monitor the equipment and wiring through the sensors. This enables you to prevent issues like overloads, and ensure that a balanced load is maintained on the line. The EMS goes a step further by enabling you to undertake predictive maintenance, for the timely repair of the equipment on the power grid, minimising accidents, preventing blackouts, and averting the costly down times.

Electricity utilities connecting their power plants and grids to available IoT solution networks get to be more transparent to their consumers, by showing them where the energy they use comes from. This empowers the consumers with the information needed to select the cleanest energy source during that period, which is particularly beneficial for those keen on adopting greener practices. For instance, you can have a system monitoring a network of grids, and dynamically shifting to power sources that have the least amount of emissions at the moment ? what’s gaining popularity as “automated emission reduction”. These lead to utility firms that produce clean energy getting more consumers and growing their revenue base.

Field And Energy Management: How FieldElite and ecoVaro Work Together Through IoT

So, on one hand, you have the energy managers following up on the consumption trends at their facilities, keeping an eye on their equipment.? On the other hand, you have field workers needed to carry out repair and maintenance works at different locations.? How do you join them together to ensure a seamless flow of operations?? The IoT.

This can be seen with ecoVaro and Field Elite interaction. Here, you have two independent systems that are interlinked through the internet and secure cloud systems, bringing more convenience on board for the users.

Picture this: Loggers collecting data from the meters and sensors on-site detect an anomaly, which you will immediately be able to view through the ecoVaro platform. This can be a myriad of issues, from plumbing to electrical systems that need to be worked on, and they are at multiple locations. How do you get them resolved? Dispatch your technicians through FieldElite.

Here’s a snapshot of how this works:

FieldElite and Ecovaro Working Together

This way, you get to optimise your operations and cut down on coasts ? taking advantage of the data analytics tools brought to you by ecoVaro, and streamlining your workflow through FieldElite. IoT powered workforce and energy management systems thus become key in reducing operational expenses, scheduling repairs and maintenance, and planning for peak hours

Accessing real-time data has the welcome benefit of cutting down on the hours spent on energy management processes. Jobs like meter reading that would have taken lots of time are handled by the system. When it comes to field management, operational efficiency is increased by taking away the manual processes involved with all the paperwork.? The sensors monitored via ecoVaro alert the field service manager about equipment that needs to be checked, and FieldElite shows the field manager issues that are on queue to be resolved. In both cases, you get accurate data that will inform the decisions made ? from the maintenance measures required, to scheduling the jobs for the technicians to handle them. It’s a win-win situation.?

Building Blocks For A Brighter Tomorrow

What’s more, this sets you up for the future. Adopting IoT solutions for your field and energy management operations will score you higher ROIs going forward. The global community is working towards enhancing the efficiency of its operations and putting in place sustainable practices in line with their Social Corporate Responsibility (CSR). This is from service providers like plumbing and electrical repair businesses, to utility firms and power generation plants. Lighting systems, homes, office buildings, factories, communities, transportation and whole cites are getting connected through the internet and more control done via smart devices. This is further accelerated by cloud systems enabling real-time, reliable and secure access to the information. By incorporating these setups into your business structure, you will gain a competitive advantage in your niche. After all, we’re still in the early stages of IoT across the industries.

What Is Technical Debt? A Complete Guide

You buy the latest iPhone on credit. Turn to fast car loan services to get yourself those wheels you’ve been eyeing for a while. Take out a mortgage to realise your dream of being a homeowner. Regardless of the motive, the common denominator is going into financial debt to achieve something today, and pay it off in future, with interest. The final cost will be higher than the loan value that you took out in the first place. However, debt is not limited to the financial world.

Technical Debt Definition

Technical debt – which is also referred to as code debt, design debt or tech debt – is the result of the development team taking shortcuts in the code to release a product today, which will need to be fixed later on. The quality of the code takes a backseat to issues like market forces, such as when there’s pressure to get a product out there to beat a deadline, front-run the competition, or even calm jittery consumers. Creating perfect code would take time, so the team opts for a compromised version, which they will come back later to resolve. It’s basically using a speedy temporary fix instead of waiting for a more comprehensive solution whose development would be slower.

How rampant is it? 25% of the development time in large software organisations is actually spent dealing with tech debt, according to a multiple case study of 15 organizations. “Large” here means organizations with over 250 employees. It is estimated that global technical debt will cost companies $4 trillion by 2024.

Is there interest on technical debt?

When you take out a mortgage or service a car loan, the longer that it takes to clear it the higher the interest will be. A similar case applies to technical debt. In the rush to release the software, it comes with problems like bugs in the code, incompatibility with some applications that would need it, absent documentation, and other issues that pop up over time. This will affect the usability of the product, slow down operations – and even grind systems to a halt, costing your business. Here’s the catch: just like the financial loan, the longer that one takes before resolving the issues with rushed software, the greater the problems will pile up, and more it will take to rectify and implement changes. This additional rework that will be required in future is the interest on the technical debt.

Reasons For Getting Into Technical Debt

In the financial world, there are good and bad reasons for getting into debt. Taking a loan to boost your business cashflow or buy that piece of land where you will build your home – these are understandable. Buying an expensive umbrella on credit because ‘it will go with your outfit‘ won’t win you an award for prudent financial management. This also applies to technical debt.

There are situations where product delivery takes precedence over having completely clean code, such as for start-ups that need their operations to keep running for the brand to remain relevant, a fintech app that consumers rely on daily, or situations where user feedback is needed for modifications to be made to the software early. On the other hand, incurring technical debt because the design team chooses to focus on other products that are more interesting, thus neglecting the software and only releasing a “just-usable” version will be a bad reason.

Some of the common reasons for technical debt include:

  • Inadequate project definition at the start – Where failing to accurately define product requirements up-front leads to software development that will need to be reworked later
  • Business pressure – Here the business is under pressure to release a product, such as an app or upgrade quickly before the required changes to the code are completed.
  • Lacking a test suite – Without the environment to exhaustively check for bugs and apply fixes before the public release of a product, more resources will be required later to resolve them as they arise.
  • Poor collaboration – From inadequate communication amongst the different product development teams and across the business hierarchy, to junior developers not being mentored properly, these will contribute to technical debt with the products that are released.
  • Lack of documentation – Have you launched code without its supporting documentation? This is a debt that will need to be fulfilled.
  • Parallel development – This is seen when working on different sections of a product in isolation which will, later on, need to be merged into a single source. The greater the extent of modification on an individual branch – especially when it affects its compatibility with the rest of the code, the higher the technical debt.
  • Skipping industrial standards – If you fail to adhere to industry-standard features and technologies when developing the product, there will be technical debt because you will eventually need to rework the product to align with them for it to continue being relevant.
  • Last-minute product changes – Incorporating changes that hadn’t been planned for just before its release will affect the future development of the product due to the checks, documentation and modifications that will be required later on

Types of Technical Debt

There are various types of technical debt, and this will largely depend on how you look at it.

  • Intentional technical debt – which is the debt that is consciously taken on as a strategy in the business operations.
  • Unintentional technical debt – where the debt is non-strategic, usually the consequences of a poor job being done.

This is further expounded in the Technical Debt Quadrant” put forth by Martin Fowler, which attempts to categorise it based on the context and intent:

Technical Debt Quadrant

Source: MartinFowler.com

Final thoughts

Technical debt is common, and not inherently bad. Just like financial debt, it will depend on the purpose that it has been taken up, and plans to clear it. Start-ups battling with pressure to launch their products and get ahead, software companies that have cut-throat competition to deliver fast – development teams usually find themselves having to take on technical debt instead of waiting to launch the products later. In fact, nearly all of the software products in use today have some sort of technical debt.

But no one likes being in debt. Actually, technical staff often find themselves clashing with business executives as they try to emphasise the implications involved when pushing for product launch before the code is completely ready. From a business perspective, it’s all about weighing the trade-offs, when factoring in aspects such as the aspects market situation, competition and consumer needs. So, is technical debt good or bad? It will depend on the context. Look at it this way: just like financial debt, it is not a problem as long as it is manageable. When you exceed your limits and allow the debt to spiral out of control, it can grind your operations to a halt, with the ripple effects cascading through your business.

 

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