This report presents the results of various California community college financial audits and reviews for fiscal year (FY) 1987-88. Section I explains the scope, purpose, and procedures of annual financial audits, which are conducted to evaluate financial statements, encourage sound fiscal management practices, ensure proper use of public funds, and strengthen fiscal accountability at the district level. This section includes an analysis of the 495 citings contained in the FY 1987-88 audit. Section II reports on the design and implementation of a comprehensive system for monitoring and evaluating the financial condition of community college districts. Section III presents results of audits of district attendance accounting and reporting procedures, completed to ensure compliance with state reporting regulations for attendance and apprenticeships. Section IV focuses on audits of the district use of federal vocational education funds and compliance with relevant regulations. A concluding section comments on each type of fiscal or compliance review, and briefly discusses plans of the Chancellor's Office that may affect community college fiscal and compliance accountability in coming years. Appendixes contain "Community Colleges State Compliance Requirements, 1987-88 Fiscal Year Audits,""Annual Audit Report Reviews and Citing Resolution Procedures," and "Office of Management and Budget, Circular A-133: Audits of Institutions of Higher Education and Nonprofit Organizations." (JMC)