The challenges facing local government and audit, control and supervision systems (ACSS) in the 21st century are complex and rapidly changing. This book discusses why the present paradigm of the treatment of the ACSS of local government cannot be a reliable means of contemporary good governance anymore. This book also presents and discusses a principally new theoretical approach to the audit, control and supervision model of the local government sector. Even though the author’s research is based on the case of Estonia, known as a small constitutional democratic liberal society with an open economy, it is not country-specific. The local government’s situation does not depend only on the political order, degree of democracy, liberalism or welfare of a country. The flexible and multivalent approach presented in this book gives a good possibility of designing, implementing and maintaining a suitable solution for the ACSS of a local government sector in any society. This book is useful and interesting reading for politicians, researchers, students and public administrators all over the world.