Case Study On Audit Risk Of Xinqiu Agricultural Enterprises

Since the 21st century,agricultural enterprises financial fraud cases occurred frequently.From "Yin Guang Xia" and "Lian Tian company" in the early 21st century to"Wan Fu Sheng Ke","Lv Da Di","Zhang Zi Dao" and the case "Xin Qiu company" in recent years,it is reflected to some extent that auditors have some problems in the audit of agricultural enterprises.Auditors in the process of auditing effectively for the agricultural enterprises audit risk failed to identify and respond to.lead to audit failure,which harm the interests of minority shareholders,also make the social public have questioned on the professional competence of auditors.Most agricultural enterprises enjoy income tax and value-added tax preferential policies from the government,the actual tax burden is extremely low,this situation makes the agricultural enterprises inflated revenues and profits of fraud cost far less than the non-agricultural enterprises.In the one hand,the nature of inventory in agricultural enterprises is biological assets,which is difficult to check the value and quality of inventory.In the other hand,agricultural enterprises have many upstream and downstream enterprises,which is more difficult to find the related transactions.At the same time,most of the agricultural enterprises are of extensive management mode,and internal control has not been effectively implemented,which makes it difficult to guarantee the authenticity of financial statements.Therefore,compared with other industries,the audit risk of agricultural enterprises is relatively high,which may lead to audit failure more easier.From the perspective of auditors,this paper takes the financial fraud case of Xinqiu agriculture as the object of study,analyzes the audit risk problems existing in the audit of Xinqiu agriculture and the causes of the problems,and finally puts forward countermeasures and SuggestionsThis paper is divided into four parts:The first part is the introduction,which introduces the research background and significance of this paper,the research status of the audit risk of agricultural enterprises at home and abroad,and reviews the research status at home and abroad,and finally expounds the research content and research methods of this paper.The second part is case description,this section firstly have an introduction of Xin qiu agriculture and successive certified public accountant,which named Ruihua s and Zhongxinghua certified public accountant.Finally,according to the specific case to introduce Xin qiu agricultural financial fraud caseThe third part is a case study.This part firstly expounds the theories used in this paper,modern risk-oriented auditing theory and information asymmetry theory.After that,the audit risks of Xinqiu agriculture were analyzed from four aspects including main business income,related party transaction,inventory depreciation reserve and internal control.Finally,the reasons for the auditors' failure to identify the audit risks of Xinqiu agriculture were explained.The fourth part is the countermeasures and suggestions,this part is in the perspective of the auditor,aiming to auditors how to decrease audit risk effectively when audit agricultural enterprises,put forward countermeasures and suggestions...