Because of the volume of Federal assistance to State and local governments, the problem of standardized auditing procedures urgently needs solution. These programs should be audited as thoroughly as Federal programs. Federal agencies already provide States and localities with auditing guidelines for use with federally assisted programs, but because certain grantee organizations receive funds from more than one Federal agency, organization auditors face a mixture of auditing styles for the various programs they must examine. Therefore, GAO is providing an audit guide to serve as a model, including a framework and questionnaire for internal control and documentation, along with illustrative financial statements.