A program for auditing California school expenditures, mandatory since 1953, was expected to show how to use public education funds most efficiently. To provide this information for other school systems, this study (1) analyzed audit practices in California's junior colleges, (2) investigated the feasibility of continuing, rather than periodic, audit, (3) established essentials of a sound audit contract. (4) constructed a model for it. From auditors and college business officers, data were collected on areas and scope of service, fees, personnel, advisory service, etc. Findings showed that auditors gave greatest service in financial and attendance accounting; purchasing, warehousing, and inventory; food services; student-body operations such as bookstores; fixed assets; insurance programs. Conclusions were: (1) school officers and auditors worked in harmony; (2) both accounting and auditing practices had improved since 1953; (3) auditors and officers generally agreed on areas of greatest service; (4) continuing audit was feasible and desirable; (5) auditors often gave advisory service. Recommendations were: (1) each district hire an external auditor on a continuing basis; (2) each district negotiate directly with him; (3) he visit the district every other month; (4) he meet with college administrators before, and the board after, preparing the final report; (5) he be employed for about five years, with option to terminate at any fiscal year-end; (6) contracts follow the model shown here. (HH)