China Saturday issued a regulation on the implementation of the Audit Law, which required close audit to government-funded projects, to make sure financial funds were properly used.

The regulation, issued by the State Council, or China's Cabinet, asked auditing offices to conduct follow-up audit to organizations or projects, which were funded or partly funded by government.

The regulation was revised and passed at an executive meeting of the State Council on Feb. 2 and will become effective on May 1 this year.

Under the regulation, audit authorities are entitled to launch special investigation into government departments or organizations on budget management or the management and utilization of state assets.

To ensure accurate and impartial auditing, the regulation provides that organizations are entitled to apply for government adjudication, administrative review or lodge a lawsuit if they disagree with the audit results.

The current Audit Law was amended and passed in February 2006 by the Standing Committee of the Tenth National People's Congress.