Professor Ray Panko conducted research on spreadsheet errors by auditing spreadsheets from various organizations. He found that while most spreadsheet errors occur in only a few percent of cells, these errors can be quite costly for organizations. Some common causes of spreadsheet errors include poor design, typos, formula errors, and lack of understanding of inputs and outputs. The most prevalent errors are referencing or linking errors, data quality issues, and logical flaws in reasoning. To prevent errors, organizations should train users, establish documentation and data standards, implement security measures, and check calculations.

1. Spreadsheet Errors Name: Kimberly Trout Date: April 4, 2010

2. Are Spreadsheet Errors A Big Deal? Professor Ray Panko, at the University of Hawaii, pulled together the available evidence from field audits of spreadsheets. YES! Although most spreadsheet errors occur in a few percent of cells, these errors can be quite costly for organizations

3. Why Are Errors So Prevalent? We work amazingly fast and don’t catch all of our errors We multitask while we work and often get distracted by other things We are overly confident of our abilities and don’t like to admit our mistakes We are afraid to ask for help for one reason or another

6. How Can These Errors Be Prevented? Train users how to use spreadsheets Set documentation standards Establish data entry procedures Use good security measures Back data up frequently Ballpark figures to check data