Wang Yukai, a professor with the Chinese Academy of Governance, said the new regulation is more specific in tracking the use of fiscal funds and clarifying the construction projects that should accept auditing, which strengthens the "deterrence" for officials.

Over the past decade, a large amount of public funds have flowed into major construction projects nationwide in the wake of the country's booming economy and rapid development. But frequent cases of bribery and corruption have caused widespread public concern.

He Guoqiang, head of the Communist Party of China Central Commission for Discipline Inspection (CCDI), the Party's internal anti-graft body, said in January that one of the major tasks for the CCDI this year is to "severely deal with violations of laws and regulations in the construction area." In the last two years, reconstruction funds for regions hit by the 2008 Sichuan earthquake and the 4 trillion yuan stimulus package to combat the global financial crisis have come under close public scrutiny, as both involve a large number of infrastructure and construction projects.

Premier Wen Jiabao and other senior leaders have urged auditors to work on any projects in the post-quake reconstruction as well as the stimulus package.

China's National Audit Office said in January that 230 million yuan ($33.7 million) of reconstruction funds have been misused.

A total of 88 cases involving 198 Party officials have been handled related to the misuse of the stimulus package money one year after its launch, an official with the CCDI said in December.

The regulation also specified auditors' power and strengthened internal supervision among audit organs of various levels, which are well recognized by experts.

"Good procedures are indispensable for a good auditing system," professor Mao said.

The current Audit Law took effect in June 2006, after being passed by the Standing Committee of the 10th National People's Congress.