Study On Audit Risk And Control Measures Of Biological Asset Impairment Of Muyuan Foods Co.,Ltd.

In recent years,the government has introduced a series of policies to promote the development of animal husbandry industry,and the support of the state has promoted the development of agricultural enterprises.Looking from pig breeding industry,the steady consumption demand of Chinese residents for pork also provides the foundation for the steady development of pig breeding industry.But because the price fluctuation of live pigs is cyclical,and live pigs have the inherent characteristics of biological assets,so the audit risk is on the high side.Taking Muyuan Stock as an example and biological asset impairment as an entry point,this paper uses case analysis and other research methods to carry out research on the audit risk and risk control of biological asset impairment.In the face of the stock exchange’s inquiry on the impairment of biological assets in the 2018 and 2021 annual reports of Muyuan Share,although the reply of Muyuan Share and the accounting firm is reasonable,there are still some problems.This paper calculates the data related to the impairment of biological assets of Makihara Stock in 2018 and2021,and finds that the company is likely to use the impairment of biological assets to adjust profits in the above two years.In terms of specific performance,in 2018,the company may take advantage of the space that biological assets do not need to be deducted to reduce operating costs.In 2021,the company is likely to have the situation that the biological assets should be deducted but not deducted.Then,the incentive of material misstatement risk is analyzed from the perspective of the company’s profit changes and financing needs.From the perspective of inspection risk,the limitation of audit work,the characteristics of biological assets and the complexity of biological assets impairment audit will increase the inspection risk.In order to reduce the risks faced by auditors in the audit of biological assets,this paper puts forward the following countermeasures.Firstly,auditors should attach importance to comprehensive analysis procedures,analyze and grasp the strategic objectives and business conditions of enterprises from a macro perspective,and trace the data based on the correlation between the data.Secondly,auditors should pay attention to the acquisition of first-hand data,in-depth field inspection of relevant facilities,procedures,systems and the effectiveness of their implementation,to ensure that the information obtained is true and reliable.In addition,auditors should be good at making use of modern equipment and technology to reduce errors caused by limitations of audit methods and characteristics of biological assets.Finally,auditors should rely on expert advice to reduce audit risks caused by complex and changing industry and market factors.This paper analyzes the audit risk of biological asset impairment of Muyuan Stock in detail,and puts forward corresponding countermeasures against the risk.It is hoped that the study of this paper can provide help for auditors in the audit work of biological asset impairment,so as to reduce the audit risk in this aspect.