Although spreadsheet programs are used for small "scratchpad" applications, they are also used to develop many large applications. In recent years, we have learned a good deal about the errors that people make when they develop spreadsheets. In general, errors seem to occur in a few percent of all cells, meaning that for large spreadsheets, the issue is how many errors there are, not whether an error exists. These error rates, although troubling, are in line with those in programming and other human cognitive domains. In programming, we have learned to follow strict development disciplines to eliminate most errors. Surveys of spreadsheet developers indicate that spreadsheet creation, in contrast, is informal, and few organizations have comprehensive policies for spreadsheet development. Although prescriptive articles have focused on such

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What we know about spreadsheet errors

In a world where information technology is both important and imperfect, organizations and individuals are faced with the ongoing challenge of determining how to use complex, fragile systems in dynamic contexts to achieve reliable outcomes. While reliability is a central concern of information systems practitioners at many levels, there has been limited consideration in information systems scholarship of how firms and individuals create, manage, and use technology to attain reliability. We propose that examining how individuals and organizations use information systems to reliably perform work will increase both the richness and relevance of IS research. Drawing from studies of individual and organizational cognition, we examine the concept of mindfulness as a theoretical foundation for explaining efforts to achieve individual and organizational reliability in the face of complex technologies and surprising environments. We then consider a variety of implications of mindfulness theories of reliability in the form of alternative interpretations of existing knowledge and new directions for inquiry in the areas of IS operations, design, and management.

https://www.jstor.org/stable/info/25148728

Reliability, mindfulness, and information systems

Stimulated by recent high-profile incidents, concerns about business ethics have increased over the last decade. In response, research has focused on developing theoretical and empirical frameworks to understand ethical decision making. So far, empirical studies have used traditional quantitative tools, such as regression or multiple discriminant analysis (MDA), in ethics research. More advanced tools are needed. In this exploratory research, a new approach to classifying, categorizing and analyzing ethical decision situations is presented. A comparative performance analysis of artificial neural networks, MDA and chance showed that artificial neural networks predict better in both training and testing phases. While some limitations of this approach were noted, in the field of business ethics, such networks are promising as an alternative to traditional analytic tools like MDA.

Comprehensive bibliography

Among those who study spreadsheet use, it is widely accepted that errors are prevalent in operational spreadsheets and that errors can lead to poor decisions and cost millions of dollars. However, relatively little is known about what types of errors actually occur, how they were created, how they can be detected, and how they can be avoided or minimized. This paper summarizes and critiques the research literature on spreadsheet errors from the viewpoint of a manager who wishes to improve operational spreadsheet quality. We also offer suggestions for future research directions that can improve the state of knowledge about spreadsheet errors and mitigate spreadsheet risks.

A critical review of the literature on spreadsheet errors

This paper reviews the information systems and accounting information systems research on the effects of information presentation format on judgment and decision making. We limit our review to static (noninteractive) formats only, where the user cannot manipulate or change the characteristics of the task, including information presentation format. We provide a conceptual framework, describing the role of information presentation in individual decision making. Additionally, we develop an integrated model of information presentation research based upon the theory of cognitive fit, and use the model to summarize the prior literature and provide suggestions for future research.

The Effects of Information Presentation Format on Judgment and Decision Making: A Review of the Information Systems Research

The pervasiveness and impact of electronic spreadsheets have generated serious concerns about their integrity and validity when used in significant decision-making settings. Previous studies have shown that few of the errors that might exist in any given spreadsheet are found, even when the reviewer is explicitly looking for errors. It was hypothesized that differences in the spreadsheets' presentation and their formulas could affect the detection rate of these errors. A sample of 113 M.B.A. students volunteered to search for eight errors planted in a one-page spreadsheet. The spreadsheet was presented in five different formats. A 2 × 2 design specified that four groups were given apparently conventional spreadsheets for comparing paper and screen and the presence or absence of formulas. A fifth group received a special printed spreadsheet with formulas visibly integrated into the spreadsheet-printed in a small font directly under the resultant values. As in previous studies, only about 50 percent of the errors were found overall. Subjects with printed spreadsheets found more errors than their colleagues with screen-only spreadsheets but they took longer to do so. There was no discernible formula effect; subjects who were able to refer to formulas did not outperform subjects with access to only the final numbers. The special format did not facilitate error finding. Exploratory analysis uncovered some interesting results. The special experimental integrated paper format appeared to diminish the number of correct items falsely identified as errors. There also seemed to be differences in performance that were accounted for by the subjects' self-reported error-finding strategy. Researchers should focus on other factors that might facilitate error finding, and practitioners should be cautious about relying on spreadsheets' accuracy, even those that have been "audited."

Sandeep Rustagi

Papers

Spreadsheet presentation and error detection: an experimental study