A Study On Audit Risk Of Biological Assets

Agricultural listed companies use their special inventory of biological assets for financial fraud cases are frequent,This not only weakens the reputation and brand image of agricultural listed companies in the stock market,but also undermines the confidence of investors,In addition,it also hinders the long-term and stable development of China’s agricultural industry and agricultural listed companies.However,the theoretical research on audit risk of biological assets is still not active,relevant accounting and auditing standards are not perfect.In addition,due to the complexity and particularity of biological assets,it is difficult to identify the audit risks of biological assets,which also increases the difficulty of auditing for certified public accountants.So audit risk studies on biological assets,It can not only provide some guidance and help for certified public accountants to audit agricultural listed companies,but also make agricultural listed companies develop more healthily,and promote the development of agriculture,In addition,it can better protect the interests of investors.Once known as "China’s first stock in pig breeding" by the industry,Chuying agro-pastoral is a hot spot for agriculture,forestry,animal husbandry and fisheries after zhangzi island,Its biological assets have obvious particularity,which also leads to many risks for certified public accountants in auditing,there is a great possibility of audit failure.Therefore,this paper selects Chuying agro-pastoral as an example and compares it with the MUYUAN,an excellent company in the same trade.Studying the audit risk of biological assets and put forward the prevention countermeasures.This paper adopts case study method,This paper firstly sorted out the related literatures of audit risk,biological assets and biological assets audit risk at home and abroad.The composition of audit risk of biological assets is determined.Secondly,A total of 43 listed agricultural,forestry,animal husbandry and fishery(A)companies were selected to analyze the current status of recognizing,measurement and disclosure of biological assets in China,and the basic status of pig breeding industry in China,to determine the industry background,Then it introduces the basic situation and important events of Chuying Agro-Pastoral.In addition,based on the accounting status of 43 agricultural,forestry,animal husbandry and fishery biological assets,based on the analysis of rules,it is concluded that the current accounting auditing standards for biological assets are not perfect and mature.This also increases the audit risk of certified public accountants auditing biological assets.Then,a case study was made on the Chuying Agro-Pastoral,based on the audit risk model,this paper analyzes the operation status,internal control status,information disclosure status and relevant financial indicators of the biological assets,and finds the source of its material misstatement risks.From the audit procedures and quality control,to find the accounting firm audit risk control deficiencies.Finally,based on the above biological assets audit risk research put forward the corresponding countermeasures,including improve audit procedures,effectively control audit risk;Control audit quality,improve the ability of certified public accountants;Rengthening supervision...