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Types of Spreadsheet Errors

Panko & Halverson 1996, distinguished between tree types of errors:

1. Mechanical Errors

These are simple mistakes such as entering a wrong number when inputting data.

2. Logical Errors

These involve entering wrong formulas because of  mistakes in reasoning. Logical Errors rates are higher than Mechanical Error rate. Studies have shown that they are more difficult to detect and correct.

3. Omission Errors

These arise when something is omitted. Studies have shown that these errors can be extremely difficult to detect.

Reasons for Errors

The main reasons for errors are found to be the followings:
1.  Overconfidence. 
2.  Inadequate documentation.
3.  Poor design.
4 . Lack of input controls.
5.  Lack of standards in development.
6.  Lack of Audit procedures.

Ways to reduce the risk of Errors

Various procedures and techniques were found to reduce the risk of errors. These are incorporated in the first part of the my Training Program.