Audit spreadsheet risk or simply audit risk, like human spreadsheet risk, can be a source of material financial and business cost to companies; thanks to erroneous financial models or spreadsheets. There are three types of audit risk: control risk, detection risk and inherent risk.

Although Excel for Mac 2011 has greatly improved functionality that mirrors its Microsoft cousin, there are still many subtle aspects that can stump a financial modeller, when creating a seamless spreadsheet between the two operating systems.

The rich functionality of Microsoft Excel provides an array of approaches to tighten internal controls of corporate spreadsheets. Some of the below techniques may seem a bit extreme and over the top in some examples, but in other instances they will greatly tighten the management of a financial model.

The ubiquitous and user-friendly nature of spreadsheets has resulted in a heavily reliance by business. However, as a financial modelling professional, I am acutely aware its use and application can be good, bad or even downright ugly at times. There are certain areas of financial, business or management informational analysis, which are best served or kept in the sphere of accounting systems or databases.

The financial model must not only forecast the client company’s future financial performance in an accurate light, but it must also “market” its future financial benefits to lenders or investors. The frenzy and emotive atmosphere surrounding the strategic planning and forecasting process, often partly overlooks or neglects the sense-checking or due diligence process.

Definitively, personalised is the ability to make or produce something to conform to a person’s individual requirements. The following identifies some more obscure or less understood elements of Excel, which can further improve the personalised added value of a best practice financial model.