Research On Inventory Control Audit Of Food Manufacturing Enterprises In China

For food manufacturing enterprises,inventory,undoubtedly the largest proportion of the whole assets,is the powerful backup of the production and operation line.In recent years,the occurrence of major food safety incidents(eg.Sanlu milk powder)in our country,has aroused widespread concern in the public,damaging the credibility of food manufacturing enterprises.Internal control of inventory not only is one of the important factors directly related to food safety,but also affects the efficiency of the industry's major aspects,including production,operation and food quality etc.Therefore,the internal control audit of inventory can not only improve food safety,but also strengthen social responsibility consciousness and improve management level of the enterprise.In the internal control of inventory and inventory audit,auditing standards and internal control requirements both home and abroad has made clear rules on the audit methods and internal control links of inventory,International and domestic experts and scholars are also keen on the research of inventory internal control audit.The inventory of food manufacturing enterprises is mostly agricultural and sideline products,agricultural and sideline products have its particularity,which makes whether the internal control or audit more complex than general manufacturing products.In 2013,Zhitong accounting firm issued a negative opinion on A company 's inventory internal control,the same year in September,A company received a warning letter issued by the Guangxi Securities Regulatory Bureau.What worth rethinking from above event mainly are:which are the difficult points in the inventory audit process of food manufacturing enterprise;how does auditing group maintain independence and how to improve the inventory internal control level of food manufacturing enterprise etc.After analyzing the internal control audit case of A company,this paper draws suggestions from angles of company and cpa.In this paper,two methods are used:theoretical research and case analysis.Based on the analysis of substantive audit procedures of inventory audit and inventory characteristics of food manufacturing enterprise,theoretical analysis fully elaborated the difficulty in inventory items audit of food manufacturing enterprise,such as stocktaking difficult and complex inventory internal control.The case analysis part first introduces the general situation of A company and the status of its operation,then retrospect the failure auditing case of the inventory control of A in 2013,and then analyzes the difficulty in A company inventory audit,the reason of the audit failure etc..The study found that there are many problems in the internal control of A's inventory,and the independence of the former cpa was gravely impaired.At last,the paper puts forward some countermeasures to the problems of A company's internal control audit-CPA should improve audit independence and its professional competence,The company should strengthen its internal control of inventory,improve the corporate governance structure,improve the professional quality of accounting staffs,etc..