Topics that an audit report should cover in a review of agency compliance with pertinent legal and regulatory requirements are summarized. Cases which illustrate this type of audit are presented, including a State education agency which was using Federal grant funds to replace local and State funds contrary to grant regulations, and skilled nursing facilities which were not calculating their reimbursable costs according to Federal regulations. Factors involved in evaluating a program's use of resources are then reviewed and illustrated by cases ranging from inefficient claims processing procedures to costly delays caused by the design review phase of a school construction program. The booklet's final section lists areas that an auditor should consider when assessing the results of a program. Examples of these techniques focus on a GAO audit of a State employment program found failing in its objectives of training unskilled workers. Five examples are provided for each of the areas covered. They note the relevant GAO standard, conditions found by the auditor, effect of the conditions, causes, and recommendations.