A Research On Audit Failure Of Agricultural Listed Companies

In recent years, a series of audit failures are associated with the agricultural listed companies, then investors doubt information on the quality of agricultural listed In recent years, a series of audit failures are associated with the agricultural listed companies, making investors doubting information quality of agricultural listed companies. The consequence is extremely serious. The failure will reduce the trust of investors and the public on accounting profession, the audit department and the capital market. Therefore, it has a certain practical significance that analyzes the unsuccessful auditing cause of agricultural listed companies and prevents agricultural listed company audit failures occur from the roots in order to promote healthy and orderly development of the stock market.Firstly, through analyzing the common reasons of auditing failure from the respect of the financial fraud of audit unit and the fault of auditing staff, the paper discovers the specific reasons of audit failure in agricultural listed company: Operating profit is greatly depend on financial subsidies; Productive biological asset measurement is easy to be controlled; Major financial investment and technology research exist high risk. And at the same time, the paper demonstrates two features of the agricultural auditing failure, that is, financial fraud focuses on high risk projects with similar manners and making up business through transaction or conspiracy with related party. Secondly, the paper reviews the " Wanfu biotechnology " audit failure cases briefly and analyzes the manner and procedure of their fraud. The paper concludes three reasons of its audit failure: the firms and CPAs are not diligence, lacking of enough analysis procedure; the company makes financial fraud in order to maintain financial stability and avoids internal structure is imbalance; social environment is facing government pressure and punishment is not enough.Finally, based on the case of " Wanfu biotechnology ", the paper puts forward some suggestions in order to avoid the audit failure of agricultural listed companies through the respect of Audit party, the audit party, the social environment, that is, firms and CPAs should be aware of the environment of the agricultural sector, professional help should be sought when necessary, in the audit process, high-risk areas should be focused on and the special audit procedures should be implemented, related party transaction should be focused on and perform analytical procedures; Listing company itself should improve the corporate governance structure and management level and strengthen the internal audit construction; social environment should strengthen government supervision and law enforcement to increase the cost of illegal.