Current assets refer to assets that an enterprise can realize or use within one year or within an operating cycle of more than one year. They are an essential component of enterprise assets. During the turnover transition, current assets start from the currency form, change their forms in sequence, and finally return to the currency form. Various forms of funds are closely integrated with production and circulation, with fast turnover speed and strong liquidity. Strengthening the audit of current asset business will help determine the legality and compliance of current asset business, check the correctness of the accounting treatment of current asset business, expose its shortcomings, and improve the efficiency of the use of current assets.

Current assets include monetary funds, short-term investments, notes receivable, accounts receivable, inventory, etc. Since the characteristics of each project are different, they should be reviewed separately according to their different requirements.

1. In physical form, current assets are basically reflected in the material reserves of various departments and residents. Including:

(1) Current assets in a state of production and consumption preparation refer to the production means reserved by production units and consumer goods reserved by consumption departments and residents;

(2) In a state of preparation for production and consumption, Current assets for sale. It refers to the unsold production means and consumer goods reserves in the production department and circulation department, as well as the reserve materials stored by the state;

(3) Current assets in the production process. It refers to the production unit’s reserves of work-in-progress and semi-finished products.

2. According to the liquidity, it can be divided into quick assets and non-quick assets. Including:

(1) Quick assets refer to current assets that can be realized in a short period of time, such as monetary funds, trading financial assets and various receivables and prepayments.

(2) Non-quick assets include inventories, prepaid expenses, non-current assets due within one year and other current assets.

Long-term assets include long-term investments, fixed assets, intangible assets, deferred assets and other long-term assets.

(1) Long-term investment. Long-term investment refers to investing money in assets that are unlikely or not prepared to be liquidated within one year, including stock investments, bond investments, and other investments.

(2) Fixed assets. Fixed assets refer to assets with a service life of more than one year, a unit value above the prescribed standard, and that maintain their original physical form during use, including houses and buildings, machinery and equipment, transportation equipment, tools and equipment, etc.

(3) Intangible assets. Intangible assets refer to non-monetary assets that do not have a physical form, such as patent rights, trademark rights, copyrights, land use rights, non-patented technology and goodwill.

(4) Deferred assets. Deferred assets refer to various expenses that cannot be fully included in the current year's profits and losses and should be amortized in subsequent years, including start-up expenses, improvements and overhaul expenses of rented fixed assets, etc.

(5) Other assets. The company's other assets refer to long-term assets other than current assets, long-term investments, fixed assets, intangible assets and deferred assets.