PurposeThe purpose of this paper, based on the institution change theory, is to analyze the factors which influence the auditees' demand for government performance auditing (GPA).Design/methodology/approachThis study acquired the data by survey. The author investigated the government officials and the state‐owned enterprises and institutions' senior managers from 28 provinces and cities, then used the econometrics model to test the hypotheses.FindingsBy analyzing the survey data, it is found that the respondents who come from the region where the economy is less developed and the legislative level is lower have more demand for the performance auditing; the respondents' knowledge about the GPA has not increased their demand; the auditing penalty effects has negative impact on the demand for performance auditing and the organizational support has positive effects on their demand.Research limitations/implicationsThe findings in this study suggest that there is not enough GPA supply in the region where the economy is less developed and the legislative level is lower, and that the auditees have not realized the benefits of GPA, although they know something about the GPA.Practical implicationsThe national audit office and its branches should pay more attention to the region where the developmental level of GPA is lower and allocate the auditing resources more efficiently. The government officials should learn more about GPA to realize its benefits and distinguish GPA from the other kinds of government auditing, such as the financial revenues and expenditures auditing. Moreover, the government at all levels should give substantial support to GPA.Originality/valueThe paper empirically analyzes, for the first time, the government auditees' demand for GPA. The paper extends previous studies in this field by surveying auditees who have been neglected but have important impact on the development of GPA.