China has a long history and brilliant civilization。The Chinese people is known in the world for their diligence，bravery and wisdom。The practice of an auditing system in China can be traced to the beginning days of the dynasties。A rudimentary form of auditing emerged as early as the Western Zhou Dynasty，3，000 years from now。A royal audit court was set up in the Song Dynasty in 992 A.D.From then on，every dynasty established specific institutions or offices in charge of monitoring state revenues and expenditures。 
　　There were no independent audit institutions in the first 30 years after the founding of the People's Republic of China in 1949。The control of state revenues and expenditures was conducted by internal supervisory bodies of departments of public finance。To adapt to the demand of reform and opening，in December1982，the 5th Plenary Session of the 5th National People's Congress adopted the resolution to practice an auditing system in China，which was included in the amended Constitution。Thereafter，in September 1983，the National Audit Office of the People's Republic of China (hereinafter referred to as the CNAO) was established with provincial， municipal and county people's governments setting up their local audit institutions in succession and audit carried out gradually all over the country。In August 1994，the Audit Law of the People's Republic of China was formally promulgated。Since the establishment of the audit institutions，auditing has played an irreplaceable role in facilitating healthy development of the national economy，promoting the building of a clean government and ensuring the implementation of government financial policies and economic laws。