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Pan Xiaojun, director of the NAO investment department, said the audit will focus on the construction of the main Olympic stadium, the national aquatics center, the conference center and the Olympic village.

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He said Olympic construction has entered a very intense phase with all stadiums and gymnasiums scheduled to be largely completed by October 2007.

"Construction progress, quality, safety and cost will top the audit agenda," Pan said.

Other NAO priorities in 2007 include the south to north water diversion project and major railway construction projects.

Auditors of the water diversion project will examine not only the construction of the project but also water pollution control.

The central government invests more than 50 billion yuan in railway construction every year, and vast bank loans are required. The NAO will audit the management of the investment, Pan added.

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