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ACCA Applied Knowledge · Management Accounting · Spreadsheets

A budget spreadsheet shows total sales in cell D10, which should be the sum of monthly sales in D2 to D9 (eight months). A reviewer finds the formula is =SUM(D2:D8). Which type of error is this, and which control would most likely have detected it?

This is a range error in the formula, because it leaves out the last month's figure in D9. It would most likely be detected by an independent review of the formulas or by cross-checking the total with a separately calculated figure, not by protecting or hiding cells.

  1. AA range error, detected by an independent review or a cross-check to a separately calculated totalCorrect
  2. BA circular reference, detected by password protection of the sheet
  3. CA data-entry transposition, detected by hiding the formula cells
  4. DA units error, detected by locking the input cells

Explanation

The formula omits D9, so the range is wrong, which is a formula (logic) error. Reviewing formulas or reconciling to an independently calculated total would reveal the difference. Protection or hiding cells prevents changes but does not find existing mistakes.

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