Written for the Australian general reader who wants to understand important trends in vocational education and training, this document describes skills audits and provides an annotated list of publications for those who want more information. The first section defines skills audits as identification of the skills required and held by the work force and states that such audits may help businesses identify the complete range of skills at their disposal, identify deficiencies in the skills they require, set corporate objectives, maximize productivity, and provide employees with more fulfilling jobs and rewarding career paths. The second section considers skills audits in the broader text of industry and award restructuring that is caused by new technology and the increasing sophistication of consumers. The third section includes implications for workers. The fourth section examines skills audits in detail, including their relationship to competencies, objectives, strategic planning, reporting outcomes, redesigning jobs, and ongoing skills monitoring. The fifth section concerns when to use skills audits and who should conduct them. The sixth section provides four case studies involving skills audits conducted in 1989. The seventh section describes how the outcomes of a skills audit are implemented. Thirty-three publications are annotated in the concluding section. (CML)