Case Analysis Of Zhangzidao’s Inventory Audit

For most industries, inventory is not only an important part of enterprise assets, but also the source of corporate profits. Inventory audit is the key of the certified public accountants audit. The Chinese and foreign auditing standards made detailed provisions to audit procedures, technology and methods of inventory. Area of auditing theory and practice research discussion to the inventory audit is growing. Most agricultural enterprises of inventory items is the biological assets. The particularity of biological assets determines the agricultural enterprise inventory audit is particularity and complexity.Zhangzidao’s "800 million yuan scallops" goods from aroused widely attention from all walks of life in 2014, Dahua certified public accountant of the company inventory impairment of the special audit become the focus of the debate. While regulators eventually accept the reason of "cold water", but from all walks of life to "where is the scallops?" attention is not over yet. The incident caused thinking like: Facing the characteristics of enterprise management in agriculture and the particularity of stock items, how the certified public accountants in accordance with the standard procedures implement inventory project audit? How to use expert in audit work? How to maintain audit independence and ability of professional competence. Thesis analyzes the inventory stock of the audit process, on the basis of experiences for the parties to the enlightenment and Suggestions are obtained.Thesis use both theoretical research and case study research method. The theory analysis the procedures of inventory audit and inventory particularity on the basis of agricultural enterprises, summed up the difficulty of agricultural enterprise. Including it is hard to check the inventory, higher requirements for professionalism. Case analysis part, first of all, introduces the inventory stock audit case of Zhangzidao company in 2014, from four aspects such as inventory impairment, impairment accounting, dahua certified public accountants of the special audit and the social attitude. Secondly, analyze from four parts such as the particularity and difficulty of audit, internal control related to inventory, auditor independence, and ability of professional competence. The study found that Zhangzidao’s inventory internal control has some flaw. Certified public accountants’ audit procedures not perfect. Finally, thesis put forward for reference for certified public accountants, company management and regulators. Certified public accountants should use expert working in some strange field. Management should strengthen the inventory internal control. Regulators can launch and improve the system of agricultural insurance, establish insider reporting system.