The evaluation of accounting controls consists of these major steps: (1) identification of the characteristics of the particular unit of government, specifically the factors affecting financial transactions; (2) formulation of internal accounting control objectives; and (3) determination of whether control techniques achieve objectives. Following an overview of the evaluation approach, the report discusses the important environmental and conceptual factors which should be considered by any government official wishing to implement the proposed plan. Issues examined are the control environment, which may influence internal control design, implementation, and execution; accounting controls and other administrative controls that may have a bearing on accounting; and the framework for an executive report that may improve communication with the public. The second major section of this guide focuses on implementing the proposed accounting control evaluation program. Evaluation guides present examples of factors to be considered in evaluating government organizations' control systems. They provide a foundation for developing an evaluation tailored to each unit of government. Further, several important areas associated with any evaluation of internal accounting controls are discussed: cost-benefit analysis, compliance testing of controls, and the audit department. (Author abstract modified)