Question: Incorrect production planning during the conversion cycle could create a risk of financial misstatement in both the revenue and expenditure cycles. a. Explain how incorrect

“Incorrect production planning during the conversion cycle could create a risk of financial misstatement in both the revenue and expenditure cycles.”

a. Explain how incorrect production planning could lead to financial misstatement in the revenue cycle, as well as the information quality goal(s) that are affected

b. Explain how incorrect production planning could lead to financial misstatement in the expenditure cycle, as well as the information quality goal(s) that are affected.

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ANSWER A That is the main reason why revenues are generally set as the high risks of material misstatement when it comes to auditing due to its nature ... View full answer

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