The success or failure of an institution on a Finance or State Chancellor's Office audit can depend upon how well the college has maintained an audit trail, recording the total number of hours and students claimed, budget expenditures, average daily attendance generation, disability designations, and Individual Educational Plans. Adequate audit trail systems require: (1) housing and categorizing data, (2) recording changes in student status and course enrollment, (3) incorporating Assembly Bill 77 (AB77) funds into the income or expenditure procedures, (4) maintaining staff trained to understand the requirements of AB77, (5) providing commitment to handicapped program evaluation and audit, and (6) delegating specific responsibility for monitoring and reviewing procedures. To assure successful audits, De Anza College has developed an Audit Manual composed of information from the College's comprehensive plan and from key documents identified by the California Community Colleges' Chancellor's Office, including state laws, state guidelines, general college documents, program management documents, student information documents, and reporting documents. Updated information provided by all college segments is recorded in the manual on a daily basis, and required program management documents are altered each quarter to insure up-to-date job descriptions, personnel lists, and program assessment statements. (JP)