This paper studies the impacts of implementation of national audit on state owned enterprises’ (SOEs’) leverage manipulation by using a multi period difference in difference model. The results suggest that national audit can effectively constrain SOEs’ leverage manipulation. Further study shows that: First, the impact of national audit on SOEs’ leverage manipulation is weaker when enterprises’ information environment, governance and internal control system is better, and stronger when the reginal government audit supervision is greater. Second, the inhibitory effect of national audit on leverage manipulation is stronger in the samples with greater leverage manipulation pressure. Third, the impact of national audit on leverage manipulation has regional spillover effect, which can promote the unaudited SOEs in the same region to reduce leverage manipulation. Fourth, national audit reduces the SOEs bank debt scale and debt default risk by inhibiting leverage manipulation.