Self-Checks In Spreadsheets: A Survey Of Current Practice

TL;DR

This paper surveys current practices in spreadsheet self-testing within financial modeling, revealing significant variability and generally limited use of self-checking mechanisms across organizations.

Contribution

It provides an empirical overview of self-testing practices in financial spreadsheets, highlighting the extent and variability of self-checking methods used.

Findings

Self-testing ranges from one test per three formulas to none.

Most spreadsheets have minimal or no self-testing.

Practices vary widely across organizations.

Abstract

A common application of spreadsheets is the development of models that deliver projections of the future financial statements of companies established to pursue ventures that are subject to project financing. A survey of 11 such spreadsheets prepared by a range of organisations shows that the amount of self-testing included in such models ranges between one formula of testing for each three formulae of calculation, down to essentially no self-testing at all.