According to the stipulation of the Audit Law of the People’s Republic of China and the Regulations for the Implementation of the Audit Law of the People's Republic of China, the basic duties and responsibilities of audit institutions in China are:

Audit institutions in China shall carry out audit over the following objects:

1. budget implementation and other government revenues and expenditures at the corresponding levels;

2. budget implementation, final accounts and other government revenues and expenditures of the departments (including the units directly subordinate to them) at the corresponding levels and of the people's governments at lower levels;

3. financial revenues and expenditures of the State institutions as well as other public institutions using government funds;

4. financial revenues and expenditures of the Central Bank;

5. assets, liabilities, profits and losses of the State-owned monetary institutions and the monetary institutions where State-owned capital dominates or predominates;

6. assets, liabilities, profits and losses of the State-owned enterprises and the enterprises with State-owned capital controlling their shares or playing a leading role;

7. budget implementation and final accounts in respect of the construction projects fully or mainly financed by government investment;

8. financial revenues and expenditures involving social security funds, public donations and other related funds and capital which are managed by government departments and other units authorized by the government;

9. financial revenues and expenditures in connection with the projects for which aid or loans are provided by international organizations or governments of other countries;

10. in accordance with the relevant regulations of the State, the principal leading persons of government departments and of other units subject to auditing by audit institutions as stipulated by law as to how they perform, during their terms of office, their economic accountabilities;

The National Audit Office shall exercise supervision through auditing over the implementation of the budget of the Central Government as well as other government revenues and expenditures, and submit audit reports thereon to the Premier. Local audit institutions at various levels shall exercise supervision through auditing over the budget implementation at the corresponding levels as well as other government revenues and expenditures, and submit reports on the audit results to the people's governments at the corresponding levels and to the audit institutions at the next higher levels.

Every year, audit institutions at various levels shall present a report on the audit of budget implementation and other government revenues and expenditures to the standing committee of the people’s congresses at their corresponding levels on behalf of their corresponding level people’s governments.

With regard to the specific matters relating to State revenues and expenditures, audit institutions shall have the power to carry out special investigation through audit and report the results thereof to the people's governments at the corresponding levels and to the audit institutions at the next higher levels.

Audit institutions shall provide professional guidance and supervision over internal auditing and have the power to check the audit reports produced by the public audit firms.