Research On Inventory Audit Risk Control Of Agricultural Listed Companies

Inventory is an important asset of an enterprise and the largest component of a working capital project.The procurement,use and sales of inventories are closely related to the business activities of the company.Real and accurate inventory information has a significant and extensive impact on the financial status and operating results of the company.Therefore,inventory is a project that CPA focus on during the audit process.The inventory of agricultural listed companies is mainly biological assets represented by forest trees,livestock,seedlings and aquatic products,while biological assets have long production cycle,are susceptible to epidemics and extreme weather,are difficult to count,and are difficult to measure fair value.These special attributes make CPA faces greater audit risk when auditing inventory items.Therefore,when auditing the inventory of agricultural listed companies,what procedures and methods do CPA use to identify and evaluate the major misstatement risks associated with inventory of agricultural listed companies,and how to design appropriate audit control schemes to control audit risks,which is the focus of this paper..First of all,this paper introduces the research background and significance,research methods and research trends at home and abroad,and the characteristics of production and management of agricultural enterprises,the concept and characteristics of audit risks,the influencing factors of audit risk,the audit risk model and the audit risk control process.The theory is elaborated.Secondly,taking ZH agricultural listed company as the research object,from the perspective of accounting firm,using the risk assessment program to understand the ZH agricultural listed company and the environment and related internal control,and identify the material misstatement related to inventory of ZH agricultural listed company.Risks include two levels of material misstatement risk at the financial reporting level and significant misstatement risk at the identified level.Thirdly,the fuzzy comprehensive evaluation method and the analytic hierarchy process are used to establish the risk evaluation index system,and the risk of material misstatement at the level of the financial statements related to inventory and the risk of material misstatement at the level of identification are separately evaluated.Based on the audit risk model,it is concluded that the risk of material misstatement related to inventory of ZH agricultural listed companies is at a relatively high level.Then,based on the above evaluation results,the accounting firm should have a targeted design audit risk control program at each stage of the audit work to control the inspection risks it faces at a lower level,namely: to undertake the inventory of the audit business stage.Audit risk control,audit planning stage inventory audit risk control,audit program execution stage inventory audit risk control and audit report issued stage inventory audit risk control.Finally,the accounting firm proposes countermeasures to ensure the normal operation of the inventory audit risk control plan of the ZH agricultural listed company,including strengthening the evaluation of the audit risk of the agricultural enterprise before signing the contract;enhancing the risk awareness of the certified public accountant on the biological asset audit;Professional competence;perfect procedures and methods for regulating physical assets.