Abstract
In recent years, incidents such as Lvdi, Wanfushengke and Yinguangxia being punished by the Securities Regulatory Commission of agricultural listed companies have frequently occurred. Audit risk has once again become the focus of audit practice. This article takes Gongzhun Meat Food Co., Ltd. as an example to analyze the risk of major misstatement of financial statements from the macro-environmental level and the enterprise level. Among them, the enterprise level is divided into business risk analysis, internal control risk analysis and the use of financial indicators (profit, compensation, debt and operating). After analysis, this paper believes that there are problems with the lack of internal control, false financial data, and low audit effectiveness of related accounting firms in Gongzhan Shares. It is recommended that when internal control is missing, the auditor should focus on the financial data at the end of the audit period and expand the substantive procedures and audits. And for agricultural enterprises, identify risks in special fields such as related party transactions or events.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Wu, G. B., & Li, M. Y. (2020). Construction and application analysis of audit material misstatement risk assessment model. Accounting Communication, 5, 134–137.
Liu, Z. H., & Zhang, C. J. (2020). Research on measurement and early warning of audit material misstatement risk-based on OWA operator and cloud model. Accounting Communication, 03, 129–133.
Liu, R., & Chen, F. L. (2015). Improving the effectiveness of identifying the risk of material misstatement by skillfully using analytical procedures—Taking the case of ‘Wanfu Shengke’ as an example. Friends of accounting, 1, 106–109.
Jiang, S. Y., & Lu, Z. N. (2013). Construction and application of audit material misstatement risk assessment system. Science and Technology Management Research, 4, 227–230.
Wang, L., Feng, Y. T., & Liu, H. F. (2015). Discussion on the formation and path effect of material misstatement risk in financial statements. Chinese Certified Public Accountant, 9, 43–50.
Wang, L., & Liu, H. F. (2011). Research on risk assessment of material misstatement of real estate development enterprises. Chinese Certified Public Accountant, 9, 85–90.
Liu, T. (2019). Study on risk assessment of material misstatement of D solid waste treatment company. Rural Economy and Technology, 6, 130–131.
Zhang, D. (2017). On the identification and evaluation of the risk of material misstatement in annual report audit—Taking the financial audit of Y company as an example. China International Finance and Economics (Chinese and English), 11, 55–56.
Yuan, J. H., & Liu, N. (2018). Study on risk assessment of material misstatement of Agricultural Listed Companies. Business Accounting, 18, 51–54.
Tian, G. J., & Yao, N. (2016). Risk identification and control of financial fraud audit of agricultural listed companies: A multi case analysis based on gone theory. Financial and Accounting Communication, 19, 93–95.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Liang, Y. (2021). Risk Analysis of Major Financial Misstatement in Agricultural Enterprises. In: Li, M., Bohács, G., Hua, G., Gong, D., Shang, X. (eds) IEIS 2020. Springer, Singapore. https://doi.org/10.1007/978-981-33-4363-4_3
Download citation
DOI: https://doi.org/10.1007/978-981-33-4363-4_3
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-33-4362-7
Online ISBN: 978-981-33-4363-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)