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Auditing Tools
Auditing Tools
s
•Tools, Auditing, Trace Precedents:  find cells that are 
,
g,
the building blocks of the current cell.
•Tools, Auditing, Trace Dependents:  find cells that 
d
d
h
ll
depend on the current cell.
ll.
.
U–nfortunately, auditing only points to cells  within 
asingleworksheet
a single worksheet.
t.
.
•Tools, Formula Auditing: show formulae on 
spreadsheet instead of results (toggle back and forth 
 
p
( gg
with Ctrl+ ‘
© 2010 S. Malpezzi
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© 2010 S. Malpezzi
©2005, S.Malpezzi
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“Tools, Auditing, Precedents” yields this symbol
when precedent cells are on another worksheet
heet
Click here
Click on dotted arrow,
to go to cells
Box pops up with cell refs.
©2005, S.Malpezzi
© 2010 S. Malpezzi
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Named Ranges
s
•Themostcommonwaytorefertocellsistousethe
The most common way to refer to cells is to use the 
use the 
 
labels of columns and rows on a worksheet.
For example, Sheet1!C27
p ,
•Or you can create descriptive names to represent 
cells, ranges of cells, formulas, or constant values.  
g
Often, we use mnemonicnames.
E–xample: ZLTV 
© 2010 S. Malpezzi
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A few ways to create named ranges
ranges
•Selectthecell,orcells,tobenamed. Thentypethe
Select the cell, or cells, to be named.  Then type the 
ype the 
 
name in the NAME BOX that appears in Excel just 
above the top left.
•Select the cells to be named, as well asadjacent cells 
(usually above, or to the left) of those cells that 
contain the text of the names.  Then go to the drop 
down menus and INSERT, NAME, CREATE, OK (2003).
2007:  FORMULAS tab of the Ribbon, “DEFINED 
INED 
NAMES” section.
© 2010 S. Malpezzi
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© 2010 S. Malpezzi
2. Type name of cell in Name Box.
Be sure to hit <Enter>
r>
1.  Select cell to be named
Note: it’s convenient to also list the
©2005, S.Malpezzi
names in adjacent cells, for 2 reasons:
asons:
ease of use, and the better way to create
names (see next slide)
© 2010 S. Malpezzi
1. Select cells to be named, AND
adjacent cells containing the names
es
2. “Insert, Name, Create” and Excel
guesses which part of range contains
ins
s
names; the remainder contains ranges
to be named.
©2005, S.Malpezzi
Advantages of named ranges
ges
•It’s easier to remember ZLTV than Sheet1!C27.
•Unlike row and column labels, named ranges remain 
unchanged as rows and columns are inserted or deleted, or 
otherwise moved around.
d.
.
•When we use VBA (later), named ranges are nearly essential.
•Note:anamecanrefertoasinglecell arangeofcells
Note: a name can refer to a single cell, a range of cells.  
f cells.  
  
Ranges can even be non‐contiguous, and extend over more 
than one worksheet.
•Easier to read formulae.
© 2010 S. Malpezzi
Garbage in, Garbage out.
ut.
•Choosingtherightdecisionrule(s)isimportant.
Choosing the right decision rule(s) is important.
rtant.
e–.g. IRR, NPV, are better primary rules than “cash‐
on‐cash returns”, though the latter is of some 
,
g
interest.
•But data, information and judgment are even more 
j g
important.
G–ood data and a rule of thumb can outperform 
lousy data and the best calculation technique.
H–olistic: if primary (IRR, NPV) and secondary (DCR, 
cash on cash) “disagree,” ask why?
© 2010 S. Malpezzi
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