Aquamarine Co (Mar/June 2016)

Dear sir,

There’s an audit risk that goes like this in the answers

“Aquamarine Co (Aquamarine) undertakes continuous production and the work in progress balance at the year end is likely to be material. As production will not cease, the exact cut-off of the work in progress will need to be assessed. If the cut-off is not correctly calculated, the inventory valuation may be under or over stated”

What does this mean?

Thanks