We won the first clean audit in years because we brought accounting regularities to the department.

Seidman in turn sued Cenco, claiming the company fraudulently induced it to give clean audits.

"For the most part, it was a very clean audit," a lawyer said.

In less than two years the House received a "clean" audit from Price Waterhouse and realized budget savings of $148 million.

A company could receive a clean audit even if its internal controls were found wanting, he said.

To some, clean audits might not seem the stuff of greatness, but Dr. Paige maintained that they were crucial to the department's credibility.

When financial ruin follows a clean audit, what typically follows is a legal battle.

Malae received praise for his management of the bank, which included a "clean" audit of its finances in 2007.

If the modification is not material or misleading, he said, then the city can use it and still get a clean audit.

But even many of the agencies that received so-called clean audits - with books well organized enough to be audited - had serious financial shortcomings.