To provide a full accounting for the use of public funds, an audit should examine not only financial operations and compliance with applicable statutes, but investigate whether an entity utilizes resources in an efficient manner and whether program objectives are achieved. These standards should be used by auditors employed in Federal, State, or local programs, as well as by contractors and grantees. General criteria concerning the scope of an audit, professional qualifications of auditors, and their independence are detailed. Standards governing examination and evaluation aspects of the audit cover planning, supervision, compliance, evaluation of internal controls, and collection of material evidence. Finally, guidelines on the distribution and content of the audit report are presented. Improvements and accomplishments should be mentioned in the report as well as problem areas. Factual evidence must support every conclusion, and views of responsible officials must be included. Moreover, audit reports should express an opinion on the accuracy and completeness of an organization's financial statements. A summary of the standards and GAO's qualifications for independent auditors engaged by governmental organizations is appended.