Research On Audit Risk Control Of Agricultural Companies In NEEQ

According to the all kinds of listed companies financial fraud cases announced by the China Securities Regulatory Commission in recent years,it can be found that agricultural companies account for a large proportion.It is precisely because of the particularity of the business operations of agricultural enterprises that it provides opportunities for fraud,which greatly increases the probability of financial fraud,and also increases auditors auditing agricultural companies' risk.At the same time,as an necessary sense of Chinese capital market,the NEEQ since its establishment in 2013,small and medium-sized developing companies involved in many industries have been attracted to enter,and agricultural companies also occupy a great proportion.However,due to the late start-up time of China's new three-board market,the development is not mature enough,and its entry threshold is relatively low,and the supervision is relatively weak.Many companies that has listed in NEEQ successfully are suddenly no longer performing as they once did and loss of their capacity to continue to operate have become normal.The first financial fraud case of the listed companies in the NEEQ,which was punished by the CSRC,is also the agricultural industry.According to the policies issued by the China Securities Regulatory Commission in the new three-board market in recent years,it can be found that not only through the active introduction of relevant regulations to increase the institutional guarantee for the new three-board market,but also to crack down on illegal activities in specific areas through step up the strengthening of law enforcement inspections.The illegal acts have reached the goal of maintaining market order and investor rights.Despite this,in the audit work for the NEEQ agricultural companies,auditors still face high-risk challenges and are under pressure.Since the new auditing standards have started to imply in the capital market,the capability to identify and assess the audit risk exactly of an audited entity has gradually evolved into an necessary indicator for measuring the quality of auditing and the professional competence of certified public accountants.Up to now,although a series of studies have been conducted by scholars at home and abroad on the identification and evaluation of audit risks,the analysis of factors affecting audit risk is lack of comprehensive and mostly qualitative analysis.Even if there is a small amount of quantitative analysis,it is rare to focus on the audit risk research in the agricultural industry,especially in the New Third Board market.Therefore,this paper uses literature research and case analysis as the main research methods.Firstly,through combing,summarizing and summarizing the literatures of audit risk,audit risk model,audit risk of new three-board agricultural companies,etc.,and then using the existing research such as audit risk,audit risk model and audit risk assessment as the theoretical basis,The analysis of risk factors of the new three-board agricultural company,using the analytic hierarchy process and fuzzy comprehensive evaluation method to construct the audit risk assessment model for this type of enterprise,and then taking Xinqiu agriculture as the case analysis object,analyzing its external environment,unit nature,The risk of material misstatement,including financial risks,and the risks of inspections in the audit process of the firm,and the application of the model to the case.According to the result of above researches,this paper proposes that for the NEEQ agricultural companies,the audit work should focus on the major misstatement risks including but not limited to the external environment,governance structure,revenue recognition and accounting,related parties and related party transactions.The research results of this paper will make the auditor's evaluation and control of the audit risk of the agricultural enterprises in NEEQ become practical in the future audit work,and provide some practical basis for the audit practice.