This is the seventh article of our interpretations for informaiton disclosure guidelines issued by Shanghai Stock Exchange(SSE) and Shenzhen Stock Exchange(SZSE) and NEEQ(National Equities Exchange and Quotations). In this article, we will focus on construction, agriculture, forestry, animal husbandry and fishery, mining, scientific research, and technical services industries.
 
Auditors should pay attention to business information of different industries during the period of audit in addition to focusing on financial data of the financial statement. For agriculture, forestry, animal husbandry and fishery industries, key focus should be paid on production and operation qualifications, forms of ownership for farm and base, and ways of requirements and etc; for real estate industry, reserves, development and investment and financing etc; for mining industry, the reserves; for power industry, installed capability, electric quantity and prices, consumption rate for station use, capital expenditure and etc; for retail industry, marketing network, commercial activity, monthly store sales, commodity categories; for environmental protection industry, business model, up and downstream industries, product orders and project operation stages.
 
On the basis of complying to requirements of China Certified Public Accountant Audit Standards No. 1521 and No. 1504, auditors should focus on key audit issues. According to disclosure of 2017 audit report of China main board, key audit issues for construction industry include revenue recognition, preparation for bad debt reserves of receivables; for agriculture, forestry, animal husbandry and fishery industries, revenue recognition, inventory impairment and etc; for mining industry, revenue recognition and preparation for bad debt reserves of receivables and etc.
 
Grant Thornton’s industry study focuses on disclosure requirements from perspectives of authorities, listed companies as well as auditors. In next article, we will look at transportation, warehousing and postal services, culture, sports, entertainment, electric and heating power, water production and supply industries.