A Case Study Of ZONECO Company’s Biological Assets Audit Failure From The Perspective Of Audit Technology

As a special asset project,biological assets have the attributes of "three difficulties" which are difficult to observe,difficult to contact and difficult to verify.Auditors use traditional audit techniques to carry out the audit,but they often fail.For example,G.P.CPA has not found any fraud in the supervision procedure of Kangmei pharmaceutical ginseng.Therefore,based on the perspective of audit technology,it is of great significance to trace the causes of audit failure and sum up the experience and lessons.Based on the perspective of audit technology,this paper makes an in-depth analysis of ZONECO’s biological assets audit.Firstly,it combs and comments on ZONECO’s "scallop disappearing" event,and concludes that the audit technical defects make auditors unable to obtain sufficient and appropriate audit evidence of scallop inventory,which is an important reason for ZONECO’s audit failure.Specifically,there are the following reasons for the failure of ZONECO biological assets audit:audit forensics methods can not identify the authenticity of the original data,the source of the original data is subject to the audited unit ZONECO;auditors use walkthrough test to understand the audited unit’s business process and its related control,and can only test the fragments of the business process,it is difficult to find whether the internal control is designed reasonably and implemented;it is difficult to judge the authenticity and integrity of the inventory due to the small sample and large error due to the application of non statistical sampling in the production measurement process;the time-consuming and labor-consuming biological assets monitoring conflicts with the audit time and cost,and it is difficult to achieve the audit objectives.Secondly,it analyzes how these defects induce audit failure,and finds that these defects affect the identification and evaluation of the risk of material misstatement,and also restrict the adequacy and appropriateness of control test and substantive test audit evidence.Finally,based on the perspective of audit technology reform,this paper puts forward some suggestions to prevent the failure of biological assets audit of aquaculture companies: using the characteristics of blockchain technology that can not be tampered with and forged to overcome the defects of original data being controlled by others;using parallel audit technology to track and control activities and effectively evaluate control measures;using spatial information technology to ensure the reliability of the results of monitoring and property testing.In view of the audit subject,the audit object and the audit environment,this paper gives the implementation guarantee of audit technology.We get the corresponding enlightenment: the audit technology needs targeted innovation to deal with the audit work of various industries and fields,the auditors should constantly improve their skills,carefully select and apply the biological assets audit technology.The novelty of the research is that the main reason for the failure of ZONECO’s biological assets audit is that the audit technical defects make the auditors unable to obtain sufficient and appropriate audit evidence,and the suggestions to combine the traditional audit technology with the new technology are given.