Audit & Regulatory Compliance
Spreadsheet risk has the capacity to undermine regulatory compliance – for example SOX, Solvency II, stress testing – by compromising the quality of the data and the accuracy of the results. Regulators are increasingly examining how spreadsheets are used, managed and audited in the business processes they regulate, and expect the same level of transparency as featured in corporate IT applications.
Companies need to spend time, energy and resource to assure themselves, and their regulators, that the business processes underpinned by spreadsheets meet the standards necessary. Shortcomings can lead to regulatory, legal and reputational damage.
Compromised data from spreadsheets can undermine preparations for external audit, potentially leading to audit points that need to be addressed. External auditors are being directed to take a closer look at business critical spreadsheets, as companies rely so much on them. Especially as there is an increasing need for transparency in how results are calculated and how the spreadsheets are managed. Equally where the audit function is used to identify operational risks for the business, accurate information is essential to identify business issues early.