11-08-2014

1
Session 4
Auditing Tool
Ive just been handed a 5000-row worksheet that computes the net
present value (NP! o" a new car# In the worksheet$ m% "&nanc&al
anal%st made an assumpt&on about the annual percenta'e o" the
'rowth &n the products pr&ce# (h&ch cells &n the worksheet are
a""ected b% th&s assumpt&on)
11-08-2014
2
5 - +
Using the Auditing Tools
5 - 4
Errors Checked Under Automatic Error
Checking
,valuates to error value
-e.t date w&th 2 d&'&t %ears
Number stored as te.t
Incons&stent "ormula &n re'&on
/ormula om&ts cells &n re'&on
0nlocked cells conta&n&n' "ormulas
/ormulas re"err&n' to empt% cells
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5 - 5
Use Error Traps
,rror traps are "ormulas added to a spreadsheet that warn the user o" potent&al
errors#
-he% can check "or errors &n &nput data or "or errors &n "ormulas#
1n% number o" error traps can be added to a workbook to &mprove &ts sa"et%#
It &s &mportant that the results o" these error checks be clearl% v&s&ble to the user#
2ne wa% to do th&s &s to create an overall error trap that checks whether any one
o" the &nd&v&dual traps &s true$ and returns a warn&n'#
Understanding Relative Cell Referencing
1llows use o" a 3'eneral4 "ormula over and over a'a&n$
but w&th a d&""erent set o" numbers
5an also cop% "ormulas us&n' the "&ll handle
11-08-2014
4
Understanding Absolute and Mixed Cell
Referencing
1bsolute cell re"erenc&n'
-o &nd&cate that a cell re"erence (both column and row! 6 or
even a part o" a cell re"erence 6 should rema&n unchan'ed
when cop%&n'
7%nta. 8 9 be"ore column letter$ be"ore re"erence number$ or
both
:&.ed cell re"erenc&n'
1 cell re"erence that has onl% one 9
5ommon when %ou need to cop% a "ormula both down
a column and across a row at the same t&me
;elat&ve re"erence< adjusts dur&n' a cop% operat&on=
7pec&"&ed w&thout dollar s&'ns$ &#e# 52
1bsolute re"erence< rema&ns constant throu'hout a cop%
operat&on= 7pec&"&ed w&th a dollar s&'n be"ore the column and
row$ &#e# 9>910
Cell Referencing
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5
RC Reference !ormat
0ses the letter ; and a number to &nd&cate the row and
the letter 5 and a number to &nd&cate the column#
/or e.ample$ cell ?2 &s ;252 &n ;151 re"erence "ormat#
In Office 2007| Office button -> Excel Options (wh&ch %ou
w&ll "&nd at the end near ,.&t ,.cel!#
@o to Formulas tab and under Working with formulas$
5heck or uncheck R! reference st"le to use &t or to
chan'e &t to # reference st"le#
"ther Cell Referencing Techni#ues
Nam&n' a cell or cell ran'e
(r&t&n' a "ormula to subtotal the cost o" 'oods sold
(r&t&n' a "ormula to calculate sell&n' e.pense
(r&t&n' a "ormula to calculate projected earn&n'
11-08-2014
A
Multiplication Table Exercise
5reate a 10.10 mult&pl&cat&on table &n a spreadsheet#
-he cells &ns&de the table (&#e#$ w&th&n the border! must conta&n onl%
"ormulas< $o constants#
/or th&s e.erc&se enter onl" a single &master' formula &n the
upper-le"t-hand corner and then dra'-cop% that one "ormula to "&ll
the rest o" the table#
Circular References
1 c&rcular re"erence occurs when the value &n
a cell depends on the value &n another cell
that$ &n turn$ &s dependent on the value &n
the or&'&nal cell#
0suall%$ a c&rcular re"erence &nd&cates a
"ormula conta&ns an error 6 and ,.cel
d&spla%s a warn&n' tell&n' %ou soB
2ccas&onall%$ a c&rcular re"erence &s needed
to accompl&sh a part&cular task#
11-08-2014
C
Enabling Circular reference
@oto /&le 2pt&ons /ormulas
5l&ck on ,nable Iterat&ve 5alculat&on
Self references
5ells can make c&rcular re"erences to
themselves (called sel" re"erences!#
,.cel assumes a value o" Dero "or a cell
be"ore the "&rst &terat&on o" a sel" re"erence
(or a c&rcular re"erence to a cell that has not
%et been evaluated!#
-hus$ enter&n' 811E1 &nto cell 11 w&ll result &n
the value 100
assum&n' ma.&mum &terat&ons &s set to 100
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Error What to Do
####### Widen the column or ensure that dates and times are not
negative (i.e., prior to January 1, 1900).
#DIV/0 The formula is trying to divide by 0-check that you have
entered the correct cell reference or that you have not deleted
data by mistake.
#N/A The formula is referring to a cell containing the NA function-
check that you have entered the correct cell reference. If you
are using a lookup function, check that there is a match for the
lookup value and that you have sorted the table correctly. If
you are using an array formula, make sure that any arguments
have the same number of rows and columns as the range
holding the array formula. If the formula is a custom formula, it
may not be available or you may have omitted an argument.
#NAME? Check your spelling-you may have spelled a function or
defined name incorrectly or you may have forgotten to enclose
text in double quotation marks. Also check that you have not
omitted the colon in a range reference or the single quotation
marks around a sheet name.
Error What to Do
#NULL! Make sure that you have entered references to cell ranges
correctly-the formula may be referring to a nonexistent
intersection between two ranges. Also check that you are
using the correct range operator and that you have not
entered a space instead of a comma.
#NUM! Check that the arguments in the function are numbers or cells
containing numbers. If you are using an iteration function like
IRR or RATE, Excel may not be able to find a result; you can
try increasing the number of iterations in Excel Options. A
#NUM! error will also appear if a number is too large or too
small for Excel to calculate.
#REF! Check the cell references-you may have deleted a cell or cut
or copied the formula, rendering any references invalid. If you
are using an OLE link, make sure that the program is running
or you may be linking to a DDE topic that is not available
#VALUE! Check that the arguments in the function are the correct data
type, that you have used the correct operands, or that you
have entered an array formula properly
11-08-2014
F
Assigning a Random $alue using the
RA%& !unction
Gets assume one needs to est&mate the cost o"
returned product as a random value between 925
and 9200
;1N>(! "unct&on returns a random real number
between 0 and 1
7tart w&th the m&n&mum value o" 25
5alculate a random value between 0 and 1C5 because
1C5 &s the d&""erence between the m&n&mum and
ma.&mum value#
:ult&pl%&n' ;1N>(! b% 1C5 would '&ve a random
number between 0 and 1C5
1dd the m&n&mum value o" 25 to th&s random value
-he result&n' "ormula &s (R#$)*+,7-.2-
RA%&'ET(EE%)bottom*top+
;eturns an &nte'er between the top and bottom values$
&nclud&n' the values l&sted
8;1N>?,-(,,N(1$+! randoml% returns 1$2 or +
11-08-2014
10
Round function
The ROUND function rounds a number to a specified number of digits. For example, if cell A1
contains 23.7825, and you want to round that value to two decimal places, you can use the
following formula:
=ROUND(A1, 2)
The result of this function is 23.78.
Syntax
ROUND(number, num_digits)
he ROUND function syntax has the following arguments:
number Required. The number that you want to round.
num_digits Required. The number of digits to which you want to round the number
argument.
Roundup and rounddo,n
;oundup
8roundup(number$ numd&'&ts!
;ounds a number up$ awa% "rom 0 (Dero!#
;ounddown
8rounddown(number$ numd&'&ts!
;ounds a number down$ toward Dero#
11-08-2014
11
-arge )arra.*k+
;eturns the k-th lar'est value &n a data set# Hou can use th&s "unct&on to
select a value based on &ts relat&ve stand&n'# /or e.ample$ %ou can use
G1;@, to return the h&'hest$ runner-up$ or th&rd-place score#
/"ntax
0#R1E(arra"$k!
#rra" &s the arra% or ran'e o" data "or wh&ch %ou want to determ&ne
the k-th lar'est value#
2 &s the pos&t&on ("rom the lar'est! &n the arra% or cell ran'e o" data to
return#
Small)arra.*k+
;eturns the k-th smallest value &n a data set# 0se th&s "unct&on to return
values w&th a part&cular relat&ve stand&n' &n a data set#
/"ntax
/3#00(arra"$k!
#rra" &s an arra% or ran'e o" numer&cal data "or wh&ch %ou want to
determ&ne the k-th smallest value#
2 &s the pos&t&on ("rom the smallest! &n the arra% or ran'e o" data to
return#
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12
Max)arra.+
;eturns the lar'est value &n a set o" values#
/"ntax
3#4(number$number2$###!
$umber5 number25 666 are 1 to 255 numbers "or wh&ch %ou want to
"&nd the ma.&mum value#
Min)arra.+
;eturns the smallest number &n a set o" values#
/"ntax
37$(number$number2$###!
$umber5 number25 666 are 1 to 255 numbers "or wh&ch %ou want to
"&nd the m&n&mum value#
11-08-2014
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Average
Returns the average (arithmetic mean) of the arguments. For example,
if the range A1:A20 contains numbers, the formula =AVERAGE(A1:A20)
returns the average of those numbers.
Syntax
AVERAGE(number1, [number2], ...)
The AVERAGE function syntax has the following arguments:
Number1 Required. The first number, cell reference,
or range for which you want the average.
Number2, ... Optional. Additional numbers, cell
references or ranges for which you want the average, up to a maximum of 255.
/aste special Command