Research On Inventory Audit Of Biological Assets Conducted By DC Accounting Firm

The listed enterprise engaged in farming, forestry, animal husbandry and fishery have a mass of inventory of biological assets which are characterized by unpredictable value, immeasurable amount and advanced expertise, which makes it risker for the accounting firms to conduct audit on them. In the past two decades, accounting fraud occurred within the confines of the capital market in China, mainly in agriculture companies such as Lantian Co. Ltd., Wanfu Biotechnology Agricultural Development Co. Ltd. and Xindadi Biotechnology Co. Ltd. How studied these cases, the author finds that it is the conundrum on auditing such companies, for its too many biological assets with troubles to evaluate, that give the lawbreakers a great propensity to falsify the financial statements and finally it leads to the result of capital market disorder and enormous damages for the investors. However, there is a solution to this problem. The author has picked up the DC accounting firm as an object, who conducts the inventory audit of biological assets of ZONECO, to explain how the resemble problems come out and as a typical case. It’s worthy to be fully understood.Before writing this paper, the author has done a lot of preparations including reading the reference documents, sorting out the relative materials and knowledge as well as consulting the experienced auditors and distinguished experts. Each detail will be unfolded as the paper continues. Before the analysis, the author introduces the elementary concepts of the accounting theories which provide the basis for the research. Aiming at the existing problem, the author will also explain the cause in combination with auditing expertise and the characters of biological assets and make a conclusion in the next chapter, bringing with the inspiration for the auditing services...