Applied Research Of The Fraud-Oriented Auditing Model In Agricultural Companies IPO Audit

The agricultural companies IPO becomes the hardest hit of financial fraud based on the characteristics of low tax cost,long production cycle,difficult inventory check,high cash transactions and weak internal control construction.Thus,the agricultural IPO,which becomes one of the least popular industries,is almost blacklisted by intermediaries.However,in practice,the risk-oriented audit modal frequently causes audit failure for being incapable of discerning fraud risks effectively,especially in the face of the agricultural IPO audit projects with higher risk.The intensification of audit failure and audit expectation gap compels theory and practice circle to explore the breakthroughs and innovations of risk-oriented audit model,and the fraud-oriented audit model emerges as the times require.Taking the fraud risk assessment in material misstatement risk as a break-though point,the fraud-oriented audit,which applies “professional skepticism” and analytical procedure to identify fraud risk factors,is the audit for confirming whether corrupt practice has happened,is happening or will happen and for exposing fraud after fully forecast and analysis.It is neither a new audit model nor the replacement of the previous audit model,is a kind of audit model applied to the specific audit objective and meeting the specific audit need,which is the innovation of risk-oriented audit.Applying the fraud-oriented audit model to the agricultural IPO audit with high financial fraud and high audit risk,can effectively enhance the capability of fraud risk identification,reduce audit risk and improve audit quality.This paper first introduces the implication,advantages and constraint factors of the fraud-oriented audit model,and then analyzes the motives of financial fraud in agricultural enterprises by using the fraud triangle theory.This paper analyzes thehigh audit risk of agricultural IPO from two aspects: the risk factors of major misreporting and checking risk factors,and puts forward the necessity of agricultural IPO's implementing fraud-oriented audit through a series of failed agricultural IPO audit cases.And then combining with the practical requirements,this paper focuses on designing the process of agricultural IPO's implementing fraud-oriented audit based on keeping fraud-oriented audit principle.Second,the paper analyzes “Zhen long Specialty” audit failure case,rethinks its financial doubt from the perspective of fraud-oriented audit,and confirms that the agricultural IPO firms' implementing fraud-oriented audit can effectively lower the risks of IPO audit risk and increase audit efficiency.Finally,combining with practical application,this paper puts forward some suggestions to perfect the application of the fraud-oriented audit of agricultural IPO and draws the conclusion.