EASA claims to have come up with a secure solution to the problem of what it calls 'spreadsheet version drift' by placing a master spreadsheet matrix behind a controlling wall that allows easy spreadsheet file viewing and modification, but prohibits the underlying mathematical structure from being modified.
The firm's spreadsheet defence technology is billed as creating a web interface using a codeless application that effectively places the authenticated spreadsheet calculus in amber, allowing users to view – and within carefully defined limits and by explicit users – the data to be modified on a granularly controlled basis.
According to Mel Glass, EASA's director of business development, horror stories in the press about companies having billions wiped off their share value due to mis-reported financial results are becoming a lot more common.
In many of these cases, he says, it turns out that somewhere in the production of these figures a faulty spreadsheet is to blame.
In fact, he claims that research from KPMG, Butler, Coopers & Lybrand and others has reported between 86% and 100% of financial spreadsheets the companies analysed had major errors that could seriously affect management decisions based on the results of the complex spreadsheets.
One recent case involved the C&C Group – the firm that owns Magners cider – which saw its share price nosedive by 15% after admitting company revenues had not risen by 5%, but had actually fallen by 3%, all due to spreadsheet error.
And, says Glass, prior to this financial headline hitting share prices, the Financial Services Authority (FSA) ended up fining Credit Suisse £5.6 million after FSA officials discovered the bank's business was less than transparent.
The lack of transparency, he adds, was down to large spreadsheets with multiple entries, creating a recipe for errors.
Glass went on to say that the corporate governance technology behind EASA was born out of the nuclear industry, to counter the possibility of spreadsheet errors, which could have unthinkable consequences.
"People love their spreadsheets. Companies in all sectors have tried to ban or replace them with Business Intelligence systems and all that happens is that employees end up taking the spreadsheet home and using it on their home computer – making the problem worse, not better", he explained.
And this is where EASA's solution enters the frame – Glass claims that it does not take the spreadsheets away from users, but takes away the opportunity for introducing errors. This, he says, makes spreadsheets safe, reliable and auditable.
"What EASA does is to define a master version of the spreadsheet and hold it centrally, making it available to users via a browser, and not as an attachment to an email or a download from a server", he said.