This guide provides information on the cooperative audit resolution for program improvement. It offers guidance for resolving audit findings, as well as tips on how to use the Cooperative Audit Resolution and Oversight Initiative (CAROI). CAROI is a collaborative method to provide alternative and creative approaches to resolve audit findings and their underlying causes. Its goal is to improve education programs and student performance at state and local levels through better use of audits, monitoring, and technical assistance. The program is designed to avoid litigation, lengthy adversarial discussions, and nonproductive impasses. The guide outlines the elements of CAROI, its design, characteristics, and principles (including communication, collaboration, and trust). It describes how CAROI works and presents this program as a responsive process. CAROI can also function as a proactive process, and the text outlines prevention techniques for potential audit findings. How CAROI can be applied to other government agencies, some of the challenges of using the initiative, and how CAROI teams can help others to get started in the process are all explored. Four exhibits outline the audit-resolution process using CAROI principles, present the CAROI matrix used for statewide single-audit findings, and offer further information. (RJM)