Case Study On Internal Control Of Biological Assets In M Company Chicken Farm

For livestock companies,biological assets are crucial assets that greatly affect business operation and development.Biological assets are relatively special compared with ordinary assets,with characteristics such as natural growth,growth cycle and diversity,which leads to the increased difficulty of measurement and control of biological assets for livestock companies and increases the insecurity of enterprise assets.With the impact of the new economic normal and the general environment of eidemic on the one hand,and the inherent special characteristics of biological assets on the other,China’s livestock enterprises are currently facing greater challenges.Under such a complex internal and external environment,Companies have no choice but to pay more attention to the internal control of their biological assets and to continuously improve and strengthen the design and implementation of appropriate systems in order to identify and avoid risks,increase competitiveness,and ensure long-term sustainability.In this thesis,we read the literature and related materials,and from the perspective of internal control,we selected the poultry farms of Breeding Farm M as our research subjects to examine the internal control system of biological assets,analyze the advantages and shortcomings of the internal control system design and specific implementation process of the chicken farm of M company,and give corresponding improvement opinions in the light of the actual situation,in order to provide reference for the internal control management of biological assets of animal husbandry enterprise.Firstly,this thesis clarifies the background of the thesis and its significance,compiles domestic and international literature on internal control of biological assets,and explains the importance of internal control of biological assets,processes and methods,major risk points and measures.Secondly,based on understanding the basic situation of Company M’s chicken farm,this thesis provides an in-depth analysis of the current situation of internal control of biological assets in Company M’s chicken farm,and explains and analyzes the overall control process and risk management matrix of Company M’s chicken farm from six aspects: budget,acquisition,daily management,disposal,inventory,depreciation and impairment of biological assets.After understanding and analyzing,this thesis concludes that the internal control of Company M’s chicken farm has achieved some successes,including the absence of material misstatement and consistent operation of internal control;however,there are inevitably some problems,such as the improper design of the point method used in inventorying biological assets,the lack of impairment-related controls,noncompliance of pollution emission,safety issues of supplier management,and the lack of early warning mechanism under epidemic situation,etc.Finally,based on the current status of internal control over biological assets in Company M’s chicken farm and its evaluation,this thesis makes some suggestions for general deficiencies in internal control over biological assets,including improving the inventory method,improving the impairment system,improving relevant environmental protection measures,controlling the source risk of biological assets,and establishing an emergency plan and early warning mechanism.The analysis of the current situation and subsequent evaluation of the internal control of biological assets in Company M’s chicken farm and the recommendations made in this thesis can help improve the design rationality and implementation effectiveness of the company’s internal control system.The recommendations made in this thesis are universal and innovative,and we hope that they can provide reference for other companies in the management of internal control of biological assets,and also enrich the theoretical research related to the internal control of biological assets.