Study On The Characteristics Of Biological Assets And The Prevention Of Audit Risks

Recently,the China Association of Certified Public Accountants interviewed the accounting firms on the agricultural listed companies,and the agricultural enterprises were listed on the red light.As for the existing research,most of the research is about the audit risk of agricultural listed companies,and some research on Zhangzidao's fishery inventory audit.However,farming and animal husbandry,the other two categories of agriculture,are neglected.Although,biological assets are the key audit matters for several types of the agricultural enterprise,the animal husbandry as a pillar of agricultural enterprises to meet the growing needs of the people.At the same time biological assets as a major animal production enterprises and production factors are an important component of corporate assets.Relative to fisheries and farming,its characteristic what needs to provide any the source of nutrition makes the transformation of biological assets important,especially animal husbandry.With the increasing development of domestic and international economic and trade,the continuous improvement of the financial market environment and the increasing enterprises engaged in animal husbandry production,more and more accounting information are demanded for the capital market.However,due to the transformation of biological assets and the special nature of natural value-added,most of the livestock companies can't provide the detailed information on biological assets,the accounting information users can't make the correct decision,and external audit is also difficult to get reliable results.At the same time,the transformation ability of animal biological assets can be directly representative of the profitability of the enterprise to some extent,and if it don't pay attention to unreasonable conversion of biological assets,so the corresponding audit risk will come.This paper collected a number of foreign studies on biological assets,the study of agricultural biological assets audit risk,and the literature on Principles of agricultural biological assets.At first,this paper introduces the characteristics of animal biological assets and audit risk,and then it analyzes the risks and causes of biological assets auditing in animal husbandry.Thereby,it emphasizes on the detailed realistic necessity of implementing Animal husbandry biological assets.At the same time,as the object of study,it combines with the relevant content about disclosing the annual report of the MS Dairy.According to the actual audit project and simulation audit,the literature research and some analysis of the animal husbandry professional indicators,such as comparative analysis,qualitative analysis andquantitative analysis,the paper combined with the results of case analysis to analysis of the current livestock biological assets audit problems,find the reasons and put forward some current audit risks of animal husbandry biological assets.It provides a new idea for the audit of animal husbandry listed companies,and that it promotes the disclosure of detailed indicators such as listed companies the transforming ability of biological assets,and to a certain extent solves the information asymmetry of the animal market and optimize the market allocation.Therefore,there is still a vague understanding in the theoretical exploration of animal husbandry,earnings also lack the disclosure of relevant information and there is a lot of difficulties and problems in the practice,so that the problems that need to be solved are to make the audit risk unknown.Therefore,this paper does the further study and exploration on the basis of the existing.It draws some new ideas of audit and reduces audit risk by the classification analysis of some professional indicators of the livestock biological assets.Finally,the paper puts forward the concrete suggestions to improve the animal husbandry biological assets' audit and prevent the audit risk by analyzing the experience and enlightenment about the case of animal biological assets audit in China.