Government audit institutions in China are comprehensive bodies in charge of controlling public finance and monitoring the economy。The Audit Law stipulates that：
　　The State Council shall establish audit institution who will take charge of auditing revenues and expenditures of public finance of departments of the State Council and local governments at various levels，revenues and expenditures of state banking institutions，state enterprises and undertakings。The audit institution shall be under the direct leadership of the Premier of the State Council and exercise its power of supervision through auditing independently in accordance with the law and subject to no interference by any administrative organ or public organization or individual。
　　People's governments at and above the county level shall establish corresponding audit institutions。Local audit institutions at various levels shall be accountable and report on their work to the peoele's governments at the corresponding levels and to audit institutions at the next higher levels。
　　The Constitution also stipulates that the Auditor General shall be a member of the State Council。The Auditor General shall be nominated by the Premier and，subject to approval by the National People's Congress or its Standing Committee， shall be appointed or removed by the President of the State。
　　Audit work in China is uniformly managed and audit institution of each level reports to its next higher level audit institution。As the supreme audit institution of China，the CNAO，directly under the leadership of the Premier，organizes and administers audit work of the whole country and reports its work to the State Council。Local audit institutions，under the dual leadership of the administrative heads of their corresponding level governments and the audit institutions at their next higher levels，organize and manage audit work within their jurisdiction。Their audit work should be directed mainly by audit institutions at the next higher levels and reported to their corresponding level governments as well as the next higher level audit institutions。