This is a fast approach to add a level of sophistication and reduce input error in your spreadsheet. It is a great technique because it will flex, based on the value chosen in a precedent drop-down list.
Reliance on erroneous spreadsheets by corporations for inaccurate financial reporting and business decision making has been reported in the financial media, because it has often resulted in profit downgrades, share price falls and a revision of corporate financial statements.
Audit spreadsheet risk or simply audit risk, like human spreadsheet risk, can be a source of material financial and business cost to companies; thanks to erroneous financial models or spreadsheets. There are three types of audit risk: control risk, detection risk and inherent risk.