The National Audit Office (NAO) is reportedly going to audit all central government offices, Communist Party of China departments and public institutions after it disclosed widespread misuse of funds by public institutions.

Together with the latest audit report, this shows resolution and confidence to curb corruption and build a clean government.

Until last year, the country's top audit body only audited departments and institutions of the State Council.

On June 24, Auditor-General Li Jinhua stated in his report to the national legislature that abuse of public funds was found in 41 of the 55 ministries and commissions under the State Council. The revelation drew broad attention nationwide.

Premier Wen Jiabao called on public institutions at all levels to draw lessons from the serious problems uncovered in auditing the 2003 central budget.

While appealing for due punishments for all violations, Wen promised the State Council would give a special report on follow-up actions to the country's top legislature at the end of this year.

The next report should try to answer the following questions triggered by the audit crisis:

How can the internal auditing mechanism supervise the use of public funds?

How to find out and deal with the people who are really responsible for the embezzlements?

While NAO does its own job, who will serve as the watchdog for areas beyond its jurisdiction?

How can governance according to law be fully achieved?

The Law on Administrative Licensing just took effect last Thursday to regulate behaviours of governments and crack down on corruptions. The auditing and follow-up moves should show how it gets enforced.

Now the audit department is reportedly enlarging its jurisdiction in order to better handle the growing workload.

In addition to other mechanisms that are in place to oversee government performance, auditing, as an effective way to check corruption, should play a larger role.