Research On Biological Assets Audit Of ZONECO

Due to the natural value-added nature of biological assets,growth cycle,geographical differences,environmental dependence,value volatility and other characteristics of biological assets.It is difficult to audit biological assets,because there are many types of biological assets,a wide range of distribution,a complicated inventory process,difficulty in supervision and audit,high professional requirements.So the audit risk of biological assets is relatively high.How to take the biological assets audit as a research object,systematically and theoretically analyze the biological assets audit,and actively explore the problems found in the biological assets audit have become an important issue that many experts and practitioners need to study urgently.ZONECO is an aquaculture enterprise,based on the research background of the “scallop incident” frequently played by ZONECO.The company's daily production and operation activities have the characteristics of long production cycle,wide inventory distribution,complicated inventory process,scattered transaction objects,and unstable transaction performance.ZONECO has a large variety of biological assets in stock with wide range and a large number.The growth of biological assets follow the cultivation rules of biological varieties,which has a large natural risk and many uncertainties in value.These uncertain factors lead to high audit risk and many difficulties with high professional requirements.Therefore,it is of great practical significance to take a research of biological assets audit.This article takes literature research methods and case analysis methods to study biological assets inventory audit of ZONECO.The theoretical analysis section summarized the concepts and characteristics of biological assets,including the difficulties of biological assets audit,risk diversification,difficult monitoring,and high professional knowledge requirements.The case analysis part briefly introduced the five aspects of company's history first,including business scopes,industry profiles,financial situations,and inventory profiles.Secondly,this article outlined the seven steps audit processes of ZONECO,which including internal control,valuation,auditing,accounting treatment,impairment provision,original records and accounting information disclosure related to inventory audit content.According to the audit processes then analyzed the current problems of company's biological assets.Proposed corresponding improvement measures based on the problems that have been found,and finally draw the conclusion of this article based on the research contents.This study found that ZONECO has some problems in the internal control of biological assets,inventory technology,impairment processing,and information disclosure.These problems are universal in the aquaculture industry,but there are also some specific problems.Based on these problems,this article looked for the causes of the problems and proposes corresponding improvements.It is recommended that the company's internal control of biological assets: scientific decision-making of seed planning,control the seed acceptancequality,fully monitoring of seed delivery,dynamic monitoring of stock growth,and reducing the risk of control activities related to biological assets.Suggestions of innovative inventory counting technology aspects: use mathematical formulas to estimate quantities,use information technology to strengthen monitoring,and use external supervision to improve the authenticity of inventory work.Regarding the impairment of biological asset inventories:improve the impairment method and approval process of biological asset inventories,and strengthen the review of inventory impairment results.According to information disclosure aspects: the company should promptly and completely disclose key accounting information,refine the content of information disclosure,strengthen the construction of enterprise information disclosure system,improve the completeness and accuracy of important information disclosure;the legislature should establish and improve relevant laws and regulations,perfect disclosure clauses to avoid loopholes in the company's utilization system;regulatory agencies should strengthen the sense of supervision responsibility,increase penalties for violation disclosure,and increase violation costs.