Auditing Excel Models


Auditing Excel Models – One Day Programme


The City of London runs on spreadsheets but how many of them are checked, reviewed and audited? Often it is assumed that the models are correct, but there have been many newspaper reports highlighting errors by investment banks and financial institutions. Through the use of graded examples, this workshop demonstrates how to review and audit models with a surer element of success.

The main topics covered are:

• Assessing overall risks
• Elements of model design
• Internal Excel techniques
• External methods
• Using third party software

Module1 Common Spreadsheet Errors

  • Reasons for auditing
  • Potential financial loss
  • Links to risk framework
  • Costs and benefits
  • Basic of spreadsheet design
  • Exercise: reconstructing a model

Module 2 Auditing Framework

  • Controls, risks, control activities, information, communication
  • Internal and IT controls
  • Database of available spreadsheet types
  • Defining spreadsheet types
  • Scoping necessary controls
  • Developing a project plan
  • Identifying and classifying deficiencies
  • Exercise: reviewing spreadsheet types

Module 3 Internal Auditing Techniques

  • Consistency checks
  • How to improve spreadsheets to allow for internal techniques
  • Exercise: checking a multi-page spreadsheet

Module 4 External Auditing Techniques

  • Matching and consistency
  • Techniques and processes
  • Exercise: finding errors in multiple spreadsheets

Module 5 Auditing Macros

  • How to audit macros
  • Minimum documentation
  • Understanding macro functionality
  • Exercise: auditing macros

Module 6 Auditing Practical

  • Review of a complete model
  • Listing weaknesses
  • Full audit and report

Questions and Answers