Spreadsheet Risk Issues

It is interesting to note that the riskiness of operational spreadsheets are overlooked even by companies with high standards of risk management. Only when errors amount to actual losses do they realize that these risks have been staring them in the face all along.

Common spreadsheet risk issues

Susceptibility to trivial manual errors

Due to the fundamental structure of spreadsheets, a slight change in the formula or value in any of their inhabited cells may already affect their overall output. An

  • accidental copy-paste,
  • omission of a negative sign,
  • erroneous range selection,
  • incorrect data input or
  • unintentional deletion of a character,cell, range, column, or row

are just some of the simple errors spreadsheet users frequently encounter. Rarely are there any counter-checking controls in place in a spreadsheet-based activity and manual errors therefore easily go undetected.

Possibility of the user working on the wrong version

How do you store spreadsheet files?

Since the most common reports are usually generated on a monthly basis, users tend to store them using variations of these two configurations:

spreadsheet storage

If you notice, a user can accidentally work on the wrong version with any of these structures.

Prone to inconsistent company-wide reporting

This happens when a summary or ?final? spreadsheet is fed information by different departments coming from their own spreadsheets. Even if most of the data in their spreadsheets come from one source (the company-wide database), erroneous copy-pasting and linking, or even different interpretations of the same data can result to contradicting information in the end.

Often defenceless against unauthorised access

Some spreadsheets contain information needed by various individuals or department units in an organisation. Hence, they are often shared via email or through shared folders in a network. Now, because spreadsheets don’t normally use any access control, any user can easily open a spreadsheet file and view or modify the contents as he wishes.

Highly vulnerable to fraud

A complex spreadsheet system with zero or very minimal controls provides the perfect setting for would-be fraudsters. Hidden cells with malicious formulas and links to bogus information can go unnoticed for a long time especially if the final figures don’t deviate much from expected values.

Spreadsheet risk mitigation solutions may not suffice

Inherent complexity makes testing and logic inspection very time consuming

Deep testing can uncover possible errors hidden in spreadsheet cells and consequently mitigate risks. But spreadsheets used to support financial reporting are normally large, complex, highly-personalised and, without ample supporting documentation, understandably hard to follow.

No clear ownership of risk management responsibilities

There?s always a dilemma when an organisation starts assigning risk management responsibilities for spreadsheets. IT personnel believe users in the business side of the organisation should be responsible since they are the ones who create, edit, store, duplicate, and share the spreadsheet files. On the other hand, users believe IT should be responsible since they have always been in-charge of managing IT infrastructure, applications, and files.

To get rid of spreadsheet risks, you’ll have to get rid of spreadsheets altogether

One remedy is to have a risk management activity that involves both IT personnel and spreadsheet users. But wouldn’t you want to get rid of the complexity of having to distribute the responsibilities between the two parties instead of just one?

Learn more about Denizon’s server application solutions and how you can get rid of spreadsheet risk issues.

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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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How To Get Started with your IT Compliance Efforts for SOX

There’s no question about it. For many of you top executives in the corporate world, all roads leading to a brighter future have to go through SOX compliance. And because the business processes that contribute to financial reporting (the crux of the Sarbanes-Oxley Act) are now highly reliant on IT systems, it is important to focus a good part of your attention there.

It is a long and arduous path to IT compliance, so if you don’t want your company to fall by the wayside due to inefficient utilisation of resources, it is important to set out with a plan on hand. What we have here are some vital information that will guide you in putting together a sound plan for SOX compliance of your company?s IT systems.

Why focus on IT systems for SOX compliance?

We’ll get to that. But first, let’s take up the specific portions of the Sarbanes-Oxley Act that affect information technology. These portions can be found in Section 302 and Section 404 of the act.

In simplified form, Section 302 grants the SEC (Securities and Exchange Commission) authority to come up with rules requiring you, CEOs and CFOs, to certify in each annual or quarterly financial report the following:

  • that you have reviewed the report;
  • that based on your knowledge, the report does not contain anything or leave out anything that would render it misleading;
  • that based on your knowledge, all financial information in the report fairly represent the financial conditions of the company;
  • that you are responsible for establishing internal controls over financial reporting; and
  • that you have assessed the effectiveness of the internal controls.

Similarly, Section 404, stated in simplified form, allows the SEC to come up with rules requiring you, CEOs and CFOs, to add an internal control report to each annual financial report stating that you are responsible for establishing internal controls over financial reporting.

You are also required to assess the effectiveness of those controls and to have a public accounting firm to attest to your assessment based upon standards adopted by the Public Company Accounting Oversight Board (PCAOB).

While there is no mention of IT systems, IT systems now play a significant role in financial reporting. Practically all of the data you need for your financial reports are stored, retrieved and processed on IT systems, so you really have to include them in your SOX compliance initiatives and establish controls on them.

Now that that’s settled, your next question could very well be: How do you know what controls to install and whether those controls are already sufficient to achieve compliance?

Finding a suitable guide for IT compliance

The two bodies responsible for setting rules and standards dealing with SOX, SEC and PCAOB, point to a well-established control framework for guidance – COSO. This framework was drafted by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) and is the most widely accepted control framework in the business world.

However, while COSO is a tested and proven framework, it is more suitable for general controls. What we recommend is a widely-used control framework that aligns well with COSO but also caters to the more technical features and issues that come with IT systems.

Taking into consideration those qualifiers, we recommend COBIT. COBIT features a well thought out collection of IT-related control objectives grouped into four domains: Plan and Organise (PO), Acquire and Implement (AI), Deliver and Support (DS), and Monitor and Evaluate (ME). The document also includes maturity models, performance goals and metrics, and activity goals.

A few examples of COBIt’s detailed control objectives are:

DS4.2 – IT Continuity Plans
DS4.9 – Offsite Backup Storage
DS5.4 – User Account Management
DS5.8 – Cryptographic Key Management
DS5.10 – Network Security
DS5.11 – Exchange of Sensitive Data

By those titles alone, you can see that the framework is specifically designed for IT. But the document is quite extensive and, chances are, you won’t need all of the items detailed there. Furthermore, don’t expect COBIT to specify a control solution controls for every control objective. For example, throughout the control objective DS4 (Ensure Continuous Service), you won’t find any mention of virtualisation, which is common in any modern business continuity solution.

Basically, COBIT will tell you what you need to attain in order to achieve effective governance, management and control, but you’ll have to pick the solution best suited to reach that level of attainment.

Articles highly relevant to the one you just read:

Month End Accounting The Way It Should Be Today
Spreadsheet Woes ? Burden in SOX Compliance and Other Regulations
Spreadsheet Woes ? Limited Features For Easy Adoption of a Control Framework
How Internal Auditors Can Win The War Against Spreadsheet Fraud

How FieldElite helps Electricians

The need to hire an electrician arises more often than we expect. It’s quite common to come across problems with structure-wiring, whether at home or in your business premises. It’s, therefore, not surprising to come across a home or a business owner in search of electrical services.

Whether a startup or a fully-fledged business that offers electrical services, there are challenges that come with running the venture. Where you have field service electricians, the challenges are even compounded, more so on matters of assigning tasks, receiving complaints from customers, and receiving field service reports.

As we all know, an electrical business isn’t just limited to the management of field service electricians. You’ll have to manage all the processes, a responsibility that can be quite daunting.

It doesn’t have to be difficult, though. You can take advantage of a field service management software program to make the entire management process effortless.

FieldElite is one such software. With FieldElite, you can assign tasks, communicate, and receive reports from your electricians on the go. Incorporating field service management in your electrical business enables you to run your business operations smoothly. 

Below are some of the benefits of using FieldElite field service management software. 

Increased Efficiency

Improved efficiency is the number one benefit electricians can get from field service management software. With FieldElite, electricians can accept jobs while in the field and add attachments together with client signatures using their smartphones or tablets. From the field management software, they can get information on the optimal route to the site, the tools required for the job, the service history of the customer, and contractual commitments.

Managing and scheduling tasks on FieldElite are just a few clicks away for office-based operators. That means reduced travel times and delays that often cripple workforce management.

Improved Professionalism

FieldElite field management software gives you a professional edge over your competitors. With this field management software, you can store all your business-related information in a central place. Therefore, each of your electricians can access the data from anywhere using their smartphone or tablet installed with the FieldElite mobile application. As such, there?s no breach in communication, and that means the electricians will get the scheduled tasks on time. Building such relationships with your team in the field encourages teamwork and motivates each team member to play their part. Again, since you can monitor what’s going on in the field, you can address the issues raised by your electricians or customers as soon as possible. 

Effective Communication

Timely communication is very essential if you’re working with field technicians. Since you’ll not always be with them in the field, it’s always important to establish a proper communication channel to ensure information reaches them in time. With FieldElite field service management software, electricians receive notifications and details about tasks assigned to them via the FieldElite mobile app.

On the other hand, office-based staff can access the report with the details of the job once the electrician completes the given task. This implies that both the electricians and the office-based operators can get communication instantly, enabling them to see and manage their workloads. Individual electricians can close jobs on-site and proceed to the next task without having to do paperwork reporting. For this reason, electricians can complete multiple tasks within a short time, which improves their overall productivity.

High Accuracy

With FieldElite field service management software, missing data or incomplete information is a thing of the past. Electricians no longer have to deal with paperwork, which can be daunting and time-consuming, yet with a million and one errors. With FieldElite advanced mobile features, all field service processes and operations are automated. The electricians are left with quite little to do, and that minimises data entry errors.

Because the managers get real-time updates from the field techs, they can accurately maintain and track the field processes. With FieldElite mobile features, managers can get information regarding the job status, the actual time of arrival, and the time taken to complete the task. With such updates, the electricians are better placed to do the job well without wasting much time, thus improving their overall productivity. 

Improved Co-ordination With The Team 

Apart from improving the productivity of the electricians, FieldElite improves coordination with the entire management team. For instance, an electrician can be assigned new tasks within the same area where they’re currently assigned instead of sending another to complete a task in that same place. FieldElite makes this possible by always capturing the current location and job status.

Whenever a new request is made in an area, FieldElite first checks the database to confirm if there is an electrician already assigned in that area. If the status of the ongoing assignment is complete or almost complete and the new task request can wait for the remaining time, the electrician in the field would be assigned the new task. By doing so, the business saves on cost and time and minimises movements. 

Improved Customer Satisfaction

As an electrician, you’ll only be satisfied if the service you offer makes the customer happy. Apart from fixing their wiring problems, they?d be happy if you responded quickly to their request. This is only made possible with field service management software. With FieldElite, managers can notify the electricians on the service requests in their respective areas, allowing them to respond to the call within a very short time. Not only does this give you some level of satisfaction as the business owner but it’s also a win for the company. 

Make your field work-flow better with FieldElite, and improve the productivity of your electricians. With FieldElite releasing regular and timely updates, users aren’t left behind whenever there are changes in the field service industry. The updates introduce new features and capture new standards to ensure that you get the best experience with the software at all times.

Reducing Your Carbon Footprint

Climate change creates a loud buzz across the globe. People are talking about how extreme the weather is, how polluted the environment has become or how devastating the results of carbon emissions are. While it is true that humans contribute a large impact to the worsening climate situations, people are also the most influential key towards making this world a better place. As much as the increase in carbon emissions results from what you do, the healthy change can also start in you.

Although it is a bit difficult to determine what you can do to help the society, do not be disheartened. The devastating forces may be massive for you to work through, but there are countless simple actions?you can take to reduce your carbon footprints day by day.

Home

While you are in the comfort of your home, you can start saving energy to reduce your carbon emission. You could’replace your standard light bulbs with compact fluorescent ones. A compact fluorescent bulb saves more than 2/3rds or up to 1,300 pounds of carbon dioxide in its lifetime. This bulb contains mercury, so make sure to choose a brand that has lower mercury than others.

Another thing, you can do to reduce your carbon footprint at home, is to mind your electronics. When you do not use your gadgets and appliances, make sure you unplug them. If you buy new ones, take time to look at the energy rating of the electronics to save you more energy in future use.

Alternative renewable energy is also a good thing to shift into. Try solar, hydro or wind power at home. Setting up your own residential solar panels and building your own turbines are excellent ways to choose green energy.

Food

The food industry is one of the largest contributors of carbon emissions. You may not have control over the food processing, but you can lower your carbon footprint by buying local products in the market. These local products are not transported from far off places, so the carbon dioxide released from them is lower compared to imported ones. Take a look at the packaging as well; less packaging means less waste.

If you have a big backyard, you could use your it to grow food. ?Eating food, either fruit or vegetable, which you grow at home is energy efficient. No more fuel combustion from transportation and other consequent food processing.

Travel

When you have your own car, accelerating it slowly and smoothly, as well as maintaining speed while driving will help lower your carbon emissions. If you drive a lot, it would be better to get a green car. As of now, you can consider using?public transportation and go for road travel rather than air travel when you take long distance trips. But when you need to take planes, better choose a non-stop flight instead of connecting ones.

Indeed, there are many ways you can combat global warming and climate change. The road to improved life quality through energy efficiency might be hard, but a transformed lifestyle can make a big difference. Start now ? lighten your carbon footprint and help save the world.

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