Research On Auditing Quality Of Certified Public Accountants In Agricultural Listed Companies

Audit quality is a decisive factor in the role of audit supervision,and plays an important role in ensuring economic order and promoting economic development.Due to the particularity of assets and inventory supervision,it's difficult to audit while easy to fraud for agricultural enterprises.At the same time,they are often unable to attract investors to obtain capital because of their long economic cycle and low profits.Both the reasons have led to the frequent occurrence of financial fraud in agricultural enterprises,which has become the hardest hit areas for auditing and supervision.Therefore,it is of great significance to carry out an audit quality research to improve audit quality of certified public accountants for agricultural enterprises.We toke Huishan Dairy as an example to analyze audit quality of agricultural listed companies in depth,studied the general methods of financial fraud used by such companies,and then proposed some methods for improving audit quality of them in a targeted manner,which is of great significance for improving audit quality and preventing financial fraud.First,the general definition of audit quality and three theoretical foundations were proposed:principal-agent theory,information-asymmetry theory,and internal controller theory.On this basis,the general evaluation criteria of audit quality were summarized and it was found that earnings management can be used as a very effective measurement for quality of audit.Secondly,we analyzed the three major factors affecting audit quality of agricultural listed companies:subject,object and audit environment.The professional proficiency and independence of auditors largely affected the reliability of audit.Besides,equity components and audit management methods showed a clear correlation with audit quality.What's more,changes in the external audit environment also had a certain degree of influence on audit quality.Then,we toke Huishan Dairy as an example through analysis of its financial statements to reveal general methods of financial falsification of agricultural listed companies,which included inflated profits,inflated operating income,and inflated capital expenditures.At the same time,We thoroughly rethought the four reasons that caused the low quality of its audit.Finally,from the perspective of certified public accountants and accounting firms,agricultural listed companies themselves,and the social regulatory environment for auditing,we put forward some suggestions on improving auditing quality of certified public accountants in agricultural listed companies,in order to improve the audit procedures of such companies and prevent financial fraud,strengthening social supervision and promoting the steady development of China's agricultural industry all have certain reference significance.