Research on Biological Assets Audit Risk and Response Strategies
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Bo Liu, Jia Liu
an important industry in my country, agriculture is also in a leading position in the world. With the emergence of more and more agricultural listed companies, some problems have begun to emerge. Most of the products of agricultural companies are biological assets, which are very different from ordinary products. They are difficult to measure and have variability, which gives many companies financial fraud opportunities. Greenland, Yinguangxia, Lantian shares in earlier years, Huishan Dairy and Zhangzidao in recent years are all such agricultural companies, which also proves that such assets are easy to cause audit problems. This article first introduces the relevant theories of biological assets to understand the concepts and characteristics of the existing audit risk model theory. Then combine the two to deduce the risk of biological asset audit and analyze its causes and audit process. And this article proposes countermeasures to deal with biological asset audit risks. Finally, by way of example Zhangzidao event occurred in recent years, for example analysis of audit risk, and to summarize where the experience and the enlightenment.
Biological assets, audit risk, control countermeasures, zhangzidao incident