THIS GUIDE, DEVELOPED BY THE GENERAL ACCOUNTING OFFICE, THE OFFICE OF MANAGEMENT AND BUDGET, AND THE INTERGOVERNMENTAL AUDIT FORUM, REPLACES ABOUT 100 INDIVIDUAL PROGRAM GUIDES PREVIOUSLY IN USE. ITS ISSUANCE IS PART OF AN OVERALL PROGRAM OF IMPROVING ACCOUNTABILITY IN THE EXPENDITURE OF GOVERNMENT FUNDS. INCLUDED ARE MANDATORY AUDIT OBJECTIVES, ILLUSTRATIVE AUDIT PROCEDURES, AND DOCUMENTATION GUIDES FOR AUDITS OF GENERAL FINANCIAL ACTIVITIES BY THE VARIOUS TYPES OF GRANTEES, SUCH AS STATE AND LOCAL GOVERNMENT AGENCIES. THE PROCEDURES ARE DESIGNED PRIMARILY FOR USE IN AUDITING GRANTEE ORGANIZATIONS ADMINISTERING MULTIPLE PROGRAMS OR ACTIVITIES, INCLUDING ONE OR MORE FEDERALLY ASSISTED PROGRAMS. THE MATERIAL PRESENTED RELATES TO THE PLANNING OF AN AUDIT, DOCUMENTATION OF AUDIT PROCEDURES, THE STUDY OF INTERNAL CONTROLS, AND THE EFFECT OF THIS STUDY ON OTHER AUDIT PROCEDURES. MATERIALS TO BE INCLUDED IN THE AUDIT REPORT ARE DISCUSSED. APPENDIXES PROVIDE SAMPLE FORMS AND FINANCIAL STATEMENTS INVOLVED IN A STANDARD AUDIT. (AUTHOR ABSTRACT MODIFIED--RCB)