A CHECKLIST OF FRAUD SYMPTOMS IS PROVIDED TO HELP GOVERNMENT OFFICIALS ASSESS THE POTENTIAL FOR FRAUD IN THEIR AREAS OF RESPONSIBILITY. CASH FLOW ANALYSIS FRAUD INDICATORS ARE ALSO LISTED, INCLUDING SUCH INDICATORS AS UNUSUAL CHECKS, ANY TRANSACTION CONVERTED TO CASH, ANY CHECK FOR EVEN AMOUNTS IN EXCESS OF $50, ANY NONPAYROLL CHECK ENDORSED BY HAND, ANY PAYMENT TO A REGULAR VENDOR THAT IS CASHED INSTEAD OF DEPOSITED, AND ANY NONPAYROLL CHECK PAYABLE TO OR ENDORSED BY EMPLOYEES. A PROFILE OF THE WHITE-COLLAR OFFENDER IS PRESENTED, BASED ON STATISTICS FROM REPORTED CASES. MANAGEMENT CONTROLS DESIGNED TO DETER AND PREVENT FRAUD ARE DESCRIBED, INCLUDING EXAMINATION OF THE EXISTING SYSTEM TO IDENTIFY AREAS OF INEFFICIENCY, BUDGETING FOR THE EXPECTED WORKLOAD USING PEFORMANCE EXPECTATIONS TO DEVELOP MANNING SCHEDULES, AND MONITORING PERFORMANCE TO SEE THAT A SYSTEM WORKS AS EXPECTED. EXAMPLES OF ACTUAL CASES OF FRAUD IN GOVERNMENT PROGRAMS ARE BRIEFLY DESCRIBED. SOME TYPES OF FRAUD AND WASTE ENCOUNTERED BY CONTRACT AUDITORS ARE LISTED SUCH AS OVERCHARGES FOR MATERIALS ON GOVERNMENT CONTRACTS, DEFECTIVE UNIT PRICING, OVERREIMBURSEMENT OF PROGRESS PAYMENTS, AND ALTERED TRAVEL EXPENSE DOCUMENTS. TYPES OF COMPUTER FRAUD IN GOVERNMENT THAT HAVE BEEN UNCOVERED ARE PURCHASING FRAUD, PAYROLL FRAUD, WELFARE FRAUD, AND DATA PROCESSING FRAUD. RESULTS OF OPINION SURVEYS ILLUSTRATE THE EXTENT OF FRAUD IN SPECIFIC CITY GOVERNMENTS. EXAMPLES OF MEDIA COVERAGE OF GOVERNMENT FRAUD, WASTE, AND ABUSE ARE ALSO PROVIDED. OVER 25 REFERENCES ON FRAUD INFORMATION ARE INCLUDED. (RCB)