Biological Assets Audit And Risk Response Measures

Biological assets mainly include animals and plants,which refer to living organisms.Productive,consumptive and public welfare biological assets are three categories of biological assets.Biological assets are not only a kind of natural resources,but also an economic asset.Like other assets,they are the means by which enterprises increase their economic value through management.With the continuous development of marine bio-economy,more and more aquaculture enterprises are gradually listed.Some enterprises that do not meet the standards hope to achieve better performance and listing,they will use some illegal means,which are prone to audit risk.As the biological assets of aquaculture enterprises have strong particularity,their biological assets are likely to become an important channel and way for aquaculture enterprises to make illegal fraud.Biological assets need to be audited professionally,but auditors are often vulnerable to a variety of factors such as the variety of biological assets and the diversity of breeding terrain.The complexity of auditing biological assets increases the auditing difficulty of CPAs,and the existing audit risks are difficult to identify.Therefore,how to carry out a correct and effective audit of biological assets is a top priority.Through the case study method,this paper makes a statement on the background and related concepts of the risk assessment of biological assets,and gives a detailed introduction to the risk drivers of biological assets audit and the risks.First of all,this paper comprehensively introduces and collects related literatures at home and abroad,collates and collects the relevant theories published by domestic and foreign scholars,and introduces the research background and significance of audit risk.Secondly,a brief introduction to the current situation of China's aquaculture industry will be carried out,and the characteristics of the aquaculture industry will be elaborated.The two events of Zhangzidao will be used as a starting point to briefly review the incident of Zhangzidao,and then the internal management of Zhangzidao Company will be carried out.Information disclosure,analysis and comparison of the number of biological assets,the proportion of biological assets and major financial indicators,according to the differences before and after the outbreak of the Zhangzidao incident,found the differences in the audit,providing data support for the audit risk found.Taking Zhangzidao Company as the case analysis object,it summarizes the real motives of financial risk and inventory risk that may be found when conducting biological asset audit from various angles and aspects,and demonstrates the importance of biological asset audit for agricultural listed companies' influences.Finally,the conclusions of the full text are summarized and the corresponding enlightenment is put forward.The main audit risk problems faced by domestic bio-asset-type enterprises are pointed out,and corresponding solutions and risk prevention measures are proposed for some problems in the audit process to provide reference for listed enterprises.Through the research,the paper draws the following conclusions: First,the system of bio-asset auditing in China is still immature;second,the management of bio-assets by agricultural listed companies is not standardized;third,the particularity of biological assets leads to an increase in the risk of auditing biological assets.The fourth is the lack of ability and experience of CPAs in auditing biological assets.Therefore,this paper comprehensively analyzes the inadequacies of the bio-asset audit of Chinese agricultural listed companies and the reasons for the audit risk by exploring the causes and types of bio-asset audit risks in the Zhangzidao case.It proposes and responds to the audit risk of Chinese agricultural listed companies,and provides reference and assistance for effective risk management and control of listed companies.