Risk: The finance director stated that there was a problem in November in the mixing...
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Accounting
Risk: The finance director stated that there was a problem in November in the mixing of raw materials within the production process, which resulted in a large batch of cola products tasting different.
My reasoning is, it is likely that these goods would have been returned . Wouldn't this reflect on the financial statement? Also, this risk can also impact the company's reputation. The inconsistency in the quality of the product can reduce the sales volume and also customers. So how can the auditor respond to this risk?
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