Describe the substantive tests you would carry out on the receivables balance to reduce the audit risk to an acceptable level. Explain with examples.

Pls explain and answer in your own words?

As part of their responsibilities, all managers get involved in planning, scheduling, and monitoring the design, development, production, and delivery of the organization's products and services. True € se

Read the question carefully and answer the following questions Suppose you are senior production manager of a company which produces beverage (carbonated soft drinks) of all flavors. The company is operating since 10 years. You and your production team follow all of the SOP’s (Standard operating procedures) while producing the beverage. You have noticed that while producing the beverage for the 1st quarter of 2021 the artificial color added to beverage is little intensive as compare to previous productions. Artificial color used in limited proportion doesn’t not harm the health of consumers but this time it is accidentally little intensive which can have some side effects.   a) As a senior production manager what managerial actions you should take to control the situation?  b)  What do you think can be the consequences if correct managerial action is not taken on time?