Research On Inventory Audit Of Agricultural Listed Companies’ Biological Assets

China is a large traditional agricultural country.Agricultural development is related to all aspects of social people’s livelihood.In the securities market,the number of agricultural listed companies is small,but they have become the hardest hit area of financial fraud since the low profit margin,the large number of cash transactions,the special accounting recognition and measurement,the preferential policies and so on.Biological assets are also the "sharp weapon" used by agricultural listed companies for financial fraud.In recent years,agricultural listed companies have frequently used biological assets to manipulate inventory and profit,which has seriously damaged the interests of shareholders and creditors,dampened market confidence and hindered the healthy and orderly development of economy.People hope to improve the authenticity and reliability of financial information through biological assets audit,so they pay more attention to biological assets audit.Scholars are committed to in-depth theoretical research and analysis of biological assets audit,involving the characteristics,problems,influencing factors,risk analysis,risk response and so on.Therefore,this thesis makes a special and detailed research on "inventory audit of agricultural listed companies’ biological assets" by means of literature research,case analysis and quantitative analysis,taking the existing theoretical researches at home and abroad as the cornerstone and the firms’ audit of A Company as the reference.This thesis uses modern risk-oriented audit model to optimize the whole process of inventory audit of agricultural listed companies’ biological assets,devoting to enrich the theoretical research of inventory audit and help to the healthy and steady development of the industry and the stable and orderly operation of the market.In the theoretical research part,this thesis combs the research status of domestic and foreign scholars on agricultural listed companies,inventory audit and biological asset audit,extracts the scholars’ views from journals,books and other documents,summarizes the current research focus,consensus,controversy and future tendency,and analyzes the shortcomings of existing theories,in order to clarify the research direction of this thesis.In the theoretical overview part,this thesis introduces the definition,characteristics,accounting and information disclosure of biological assets in detail,which helps to find the root causes of biological assets audit’s high risks.At the same time,it defines that the inventory audit of biological assets is the audit of expendable biological assets.Then it explains the related concepts and analyzes the risks of inventory audit of biological assets,which helps to find difficulties in audit,possible problems in audit and its reasons.Finally,it briefly introduces the information asymmetry theory,principal-agent theory and modern risk-oriented theory,and expounds the impact of these theories on the analysis of audit risk and the design of audit procedures.In the case study part,this thesis makes a thorough study on firms’ audit of A Company’s biological assets.Firstly,it analyzes the overall situation of A Company.Secondly,it elaborates the difficulties facing in audit.Thirdly,it introduces the current situation of audit,leading to the discussion of the existing audit problems and its cause.The problems existing in the firms’ audit of A Company’s biological assets are mainly reflected in: the time arrangement and personnel arrangement in the audit preparation stage are unreasonable,the internal control test,substantive procedures and further audit procedures in the audit implementation stage are not in place,and the audit’s faults were not found in the audit report stage.The root causes lie in: the problems in the audit preparation stage are mainly due to the lack of risk identification and assessment,and the lack of risk countermeasures;the problems in the audit implementation stage are mainly affected by the professional ethics of firms,the personnel management system of firms and the particularity and complexity of biological asset inventory audit;the main reason for the problems in the audit report stage is that the audit review is a mere formality,which cannot successfully cover the bottom of the audit quality.Finally,this thesis puts forward specific measures to improve the biological asset inventory audit of A Company one by one according to the audit process of preparation stage,implementation stage and reporting stage,based on the modern risk-oriented audit model.In the conclusion part,the case study results are extended to the inventory audit of agricultural listed companies’ biological assets.