As you are reviewing Excel files and changes are subsequently made to the spreadsheets, it can be difficult to have an audit trail to ensure changes are made as we expect to see them. Historically some reviewers have been printing a copy of the Excel file as it existed at the time it was reviewed to have a static copy for review purposes. This PDF would then be compared with the updated Excel file to review the changes. While this may be a good solution, there is another option that may be a better alternative.

Consider using the 'track changes' feature within Excel. With this feature, Excel has the capability to keep a history of the changes and the times the changes were made. These changes will appear similar to how the comments do (denoted with a flag in the cell(s) where the change occurred -- on the left side of the cell).

A good use of this feature within Excel would be in the following situations:

• After reviewing an Excel reconciliation and the preparer will be making significant changes to the tax return and you would like to review the changes before the return is processed.
• When working with an Excel file within an engagement product and significant changes need to be made to a file.

• Select Tools from the top menu
• Select Track Changes
• Select Highlight Changes

The following window will open:

Note that you have a few options to select from:

When the changes were made:



You can also select who made the change to filter out yourself:



Please note that this will share the workbook so multiple users could make changes simultaneously (this is not true of an Engagement file).

Once the track changes is turned on, you may choose to list all the changes on a new worksheet in the Excel file:

To view the changes, simply hover over the cell that has a flag (dark Blue flag in the example below) on the left-hand side:



After the changes are made, you can also accept or reject the changes. By accepting the change, the new value in the cell will remain.  The item will still be identified as a "changed item" when track changes is selected again.  It will not be available for approval or rejection (unless it is subsequently changed). By rejecting the change, the item will revert to the original value.  The item will no longer be identified as a "changed item" when track changes is selected again.  It will not be available for approval or rejection (unless it is subsequently changed).

Excel 2007 users may wish to view this free video.

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