Internal Audit of Corporate Spreadsheets for UK Gaming and Lottery Organisation | Resources
 
 
Xcina Case Study

Internal Audit of Corporate Spreadsheets for UK Gaming and Lottery Organisation

The client

UK Gaming and Lottery Organisation

The work

We were requested by the client to audit the functional integrity of the profit and loss and balance sheet 15 year forecasts, comprising of 14 different scenarios that were used for business planning. The forecasts were prepared on a spreadsheet that had grown over the years to over 20MB. Although the formulas and macros used in the spreadsheet were of medium complexity, the logic flow between different data sets and subsidiary calculations were quite complex, and the client was keen to obtain assurance that the spreadsheet, given its importance to the business strategy, was still fit for purpose.

How we helped

We undertook a detailed manual review of the logic and calculations within the spreadsheet. This included looking at all the elements of standing data and input assumptions and following these through to final output. We identified all the instances at which the data was subjected to change or manipulation and validated that this change was appropriate. In addition to the detailed manual review, we used a licensed automated spreadsheet auditing tool to identify instances in the spreadsheet that required further analysis e.g. hidden data or worksheets, cells without dependents, failed formulas, inconsistencies in otherwise cloned formulas and text cells containing numbers.

Value added

We identified a number of issues which we discussed with the spreadsheet author prior to the submission of the final report. The spreadsheet contained significant errors in the calculations that resulted in the overstatement of profit before tax of between  £50m and  £160m, approximately 10% of forecasted profit in any one year of the period under review. Our findings were used by the Client to amend its projections and provide more accurate forecasts. More importantly, the findings had significant contractual implications in the Client’s negotiations with its regulators.

Industry and sector:

Technology

Solutions and service area:

What our clients say

"Xcina is always responsive to any question we have during the time we are implementing data protection remediation activities, they keep us informed and understand what we need and what we’re trying to do. "

Getac Technology Corp, Legal Affairs Center

"Xcina is always responsive to any question we have during the time we are implementing data protection remediation activities, they keep us informed and understand what we need and what we’re trying to do."

ParkMobileUK, Managing Director

"Xcina Consulting performed an annual review of our card data environment, and ensured that we are compliant with the PCI-DSS. We continue to work with their experienced QSAs, leveraging their guidance and best practices so we have the highest possible level of security controls in place."

DKB Brands, Data Protection Officer

"Xcina really helped us to kick start our data protection compliance process. They took the time to speak to all departments of the business and outlined our highest risk to lowest risk areas. The insight and guidance they provided was essential for our business to become GDPR compliant."

Portman Settled Estates Limited, Estate Secretary

"Xcina’s ongoing support has ensured that our employees feel confident when dealing with data protection matters, with best practice knowledge and expertise from consultants who have taken the time to get to know our business and our industry."

National Bank of Kuwait, Compliance Officer

"Xcina worked with us on a number of data protection matters, including subject access requests and gave helpful, practical advice which reflected their understanding of technology issues as well as legal matters."

Your World Recruitment, Group IT Director

"We have worked with with Xcina successfully for two years, initially on internal GDPR GAP analysis. We now have them engaged as our ‘Virtual DPO’ provider and regularly receive useful, pragmatic and, more importantly, actionable advice on all areas of Data Protection."

Quadrangle Research, Group Chief Operating Officer

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