Study On Risk Prevention Of Biological Assets Audit In Zhangzidao Group

With the development of globalization,although more and more goods can be obtained through the international market.However,China has always insisted that China’s grain production should be in our own hands.Therefore,food security has always been the focus topic of our country.On the other hand,the asset form of grain is mainly classified as biological assets,which simply refers to animals and plants.The asset could be divided into three types.As the core assets of agricultural enterprises,biological assets show strong particularity due to their different types.The value change laws of different types of biological assets are different due to the differences of varieties,But like other assets,the ultimate goal of an enterprise is to increase production and value through appropriate operation and management.However,when enterprises want to achieve better performance and listing due to poor management of biological assets,it is particularly easy to take advantage of the particularity and complexity of these biological assets and adopt some illegal means,which is very easy to bring audit risks.In addition,biological assets have higher requirements for the professionalism of auditors.Otherwise,there are many of influence of various factors such as complex types of biological assets and diverse forms of breeding places,resulting in the failure or failure of necessary audit procedures,which makes the existing audit risks difficult to be identified.Based on this situation and background,this thesis discusses and studies the risk prevention of biological assets audit.This thesis selects Zhangzidao group as a case to analysis.First at all,based on the domestic and foreign literature,this thesis first introduces the concept and relevant theories of audit risk one by.then,this thesis first combs and reviews the series of events in Zhangzidao,and then analyzes the main risk points in the company’s biological assets audit from the four aspects of material misstatement risk,inherent risk,control risk and inspection risk at the level of financial statements based on the modern audit risk theory,The weak cost control,financial loss and unreasonable ownership structure of Zhangzidao company are the incentives for the risk of material misstatement;The particularity of biological assets of agricultural production enterprises leads to the difficulty of cost accounting,and the difficulty of inventory provides the possibility of major misstatement;Unreasonable corporate governance structure and ineffective internal control are the inherent risks of Zhangzidao company’s audit;Lack of internal control risk assessment and lack of inventory supervision means are the main causes of inspection risk.Based on the specific identified audit risk factors,improving the principal-agent relationship and fully understanding the overall financial situation of the company.For the risk of material misstatement at the identified level,paying attention to inventory cost recognition and value measurement,and focusing on income are more effective means to reduce this kind of risk,In view of the inspection risk,this thesis puts forward some countermeasures,such as improving the independence of auditors and make special audit training more strengthening.The last part is the research conclusions and policy suggestions.Above all,it summary the total text,explains the research content,puts forward policy suggestions which could be helpful to avoid the audit risk and protect the biological assets of agricultural listed companies from the perspectives of Zhangzidao group,accounting firms and government regulators,so as to provide reference and help for listed companies to carry out effective risk management and control.