GAO reviewed independent audits of the balance sheets of the Federal Home Loan Mortgage Corporation for the years ended December 31, 1982, and December 31, 1981.

After examining its workpapers and determining the quality and reliability of its work, GAO relied on the independent auditor's work as the basis for its review. The auditor concluded that the balance sheets presented fairly the Corporation's financial position in conformity with generally accepted accounting principles applied on a consistent basis. GAO found no evidence that the auditor's opinion was inappropriate or could not be relied on. There was no evidence of internal control weaknesses or noncompliance with laws and regulations. GAO concurred with the auditor's findings and transmitted them to Congress.