Improving the operational efficiency of state-owned enterprises (SOEs) is important in promoting the high-quality development of SOEs. Using data from central enterprise audit events conducted by the National Audit Office of China from 2010 to 2018, a staggered differences-in-difference model is used to examine the impact of government audits on the operational efficiency of SOEs. The study finds that government audits can improve the overall operational efficiency of SOEs, mainly by improving inventory management, promoting innovation, reducing sales and administrative expenses ratios, and increasing product market share. Specifically, government audits play a preventive role in inhibiting the short-sightedness of management, a revealing role in improving information disclosure quality, and a resistance role in inhibiting management violations, all leading to improving SOEs operational efficiency. Moreover, government audits have a substitutive relationship with high-quality social audits while having complementary relationships with internal governance mechanism and corporate information environment. These results extendthe research of government audits and reveal the basic logic and current situation of how government audits enhance the efficiency of state-owned enterprises, which is significant for promoting their high-quality development.