Abstract:Considering the internal and external environment that the Chinese financial system is facing, the author makes an analysis of the main challenges for the Chinese financial security. At the same time, the author makes some related policy proposals based on the survey of the typical cases in the field of financial industry and market innovation in recent three years by analyzing the new situation the state financial audit is encountering. The analysis results show that, with the quickening openness of China financial system to the outside world, the domestic financial industry and financial market innovation accelerates its steps and the state financial system faces the shock of international short power and the threat of international capital to the internal financial security. Therefore, there is greater space for state financial audit innovation, it also requires more new functions and plays a greater role in the guarantee of state financial security.