Research On The Identification And Control Of Audit Risk Of Zoneco Group’s Biological Assets

Biological assets are an important part of the assets of agricultural enterprises.Due to the particular attribute of natural value increment,It increases the risk of accounting confirmation,accounting measurement,and disclosure accounting information.It also increases the difficulty of auditing the biological assets of agricultural enterprises.In recent years,agricultural listed companies’ financial fraud cases occurred frequently.From delisting of old-brand Lantian Stock which had good performance before,to Huishan dairy’s shares plunged.From the closure of the scallop of in 2014,to the incident happened again in 2017.Agricultural listed companies audit problems emerge in endlessly,and hard as it is for auditors to guard against the audit risk of biological assets.Therefore,it is particularly important to identify and control the audit risk of biological assets.From auditors’ perspective,this paper selects ZONECO as the research object,mainly studying the audit risks faced by auditors in the audit of listed agricultural companies,and focusing on the identification and control of biological assets’ audit risks.In this way,auditors can effectively identify and control audit risks,avoid financial fraud,and help the sound operation of the capital market.This paper reads and collects present foreign and domestic research.First of all,this paper expounds the concept of biological assets audit risk and the theoretical basis of audit risk of biological assets.Secondly,the ZONECO is introduced for analysis.For better understanding,this paper gives a brief introduction of ZONECO,and analyzes the cause of biological assets’ audit risk,including the characteristics of biological assets of ZONECO and incomplete internal control system,the non-standard professional ability and practice behavior of Dahua accounting firm,and the imperfect industry auditing standards and supervision.Furthermore,the audit risks can be identified by external forces and by accounting firms themselves.Applying modern audit risk models,identify the risk of material misstatements at the financial statement level and identification identification level,and detection risk.At the same time,the level of identification is divided into inherent risk and control risk.Then,this paper puts forward the control measures of biological asset audit risk in three aspects,namely,the audit subject,the audit object,the audit environment.Finally,draw the conclusion.