Audit Risk Analysis Of Agricultural And Sideline Food Processing Enterprises In NEEQ

In December 2013,the state council liberalized the regional restrictions on enterprises listed on the new third board and accepted listing applications from all over the country.As a result,the problem of financing difficulties for small and medium-sized enterprises has been solved,and the number of listed enterprises also increased like bamboo shoots after a rain.Many small and medium-sized agricultural and siding-food processing enterprises also seized the opportunity to list on the new third board one after another.However,with the influx of agricultural and sideline food processing enterprises in the new third board market,the number of offending enterprises is also on the rise.In the new third board market,due to the low entry threshold and insufficient supervision,many enterprises have changed their performance rapidly after listing and lost their ability to continue business.At the same time,agricultural and sideline food processing enterprises have the characteristics of some agricultural enterprises,with special inventory nature and frequent cash transactions,which provide an opportunity for management fraud.Therefore,influenced by the market environment and industry factors,there are relatively high audit risks in the agricultural and sideshow food processing enterprises in the new third board,which require the CPA to carry out annual report audit.However,few scholars have studied the audit risks of such enterprises.The research question of this paper is: What are the audit risks faced by certified public accountants when auditing the new third board agricultural and sideshow food processing enterprises? What are the countermeasures against these audit risks?The research idea of this paper is as follows: Firstly,the characteristics of the new third board market and the agricultural and sideshow food processing industry are analyzed,and the corresponding audit risk points are summarized to pave the way for the specific case analysis.Secondly,the audit risk model is used to analyze the material misstatement risks at the financial statement level and the identification level as well as the inspection risks faced by the CPA by taking the illegal new third board agricultural and by-product food processing enterprise Baile Grain as an example.Finally,it summarizes the material misstatement risk points that should be paid attention to in the annual report audit of agricultural and sideshow food processing enterprises on the new third board and the control measures for the inspection risk.The research findings of this paper are as follows :(1)The listing threshold,risk warning trigger conditions and market stratification system of the new third board market,as well as the industrial policies,natural environment,cash purchase methods and food safety requirements of agricultural and sides-food processing enterprises will increase the risk of material misstatement of the enterprises;The audit workload of the annual report of CPA does not match the fees,and the lack of audit experience in relevant industries will increase the inspection risk.(2)The material misstatement risks of Baile Grain are mainly embodied in the external environmental risks,the control of environmental risks and the risk of continuous operation;Inventory authenticity risk,business revenue recognition risk,related party transaction risk and cost misstatement risk;The inspection risks of CPA are mainly reflected in the lack of audit experience in relevant industries,the large audit workload,the inadequate implementation of audit procedures and the quality control problems of the firm.(3)For the audit risk points mentioned above,the CPA shall strengthen the identification of the material misstatement risk points of the agricultural and sideshow food processing enterprises of the new third board and control the inspection risk.The innovation of this paper is as follows :(1)The research on audit risks of new third board enterprises is focused on the agricultural and sideline food processing industry.(2)The case study of Baile Grain,a recently punished enterprise with serious violations,is of certain reference significance for certified public accountants to prevent the audit risks of such enterprises in the audit practice.