An audit guide to assist independent public accountants in performing audits of federal student financial assistance (SFA) programs is presented. The audit assists the Department of Education in determining whether a recipient has (1) provided financial data, including basic financial statements and other financial reports; (2) maintained a system of internal control over the receipt and expenditures of funds; and (3) complied with the terms and conditions of federal awards. Compliance requirements are reviewed, including: cash management, financial reporting, institutional eligibility and participation, coordination of student aid programs, student file maintenance, fiscal procedures and recordkeeping, student eligibility, institutional disbursements to award recipients, and refund calculation and overpayment determination procedures. Specific compliance requirements for the following programs are also covered: Pell Grant, campus-based programs (general), National Direct Student Loan, College Work Study, Supplemental Educational Opportunity Grant, and Guaranteed Student Loan. Reporting requirements are also examined, with selected sample reports. Appended are a bibliography, addresses and phone numbers of the regional inspectors general for audit, and OSFA regional and headquarters program contacts. (SW)