FEC auditors cited a failure to file one report in July 2003 reflecting the gross receipts of the campaign. The report accompanying the 2003 year-end report was also incomplete.

The report is used so competitors can determine if they are entitled to increased contribution limits under the new campaign finance laws. It was required for the first time in 2003.

Cannon's campaign said it was unaware of the new reporting requirement, which was required, and the campaign would file the report in the future.

“The question remains why we had to go through this in the first place,” said Joe Hunter, Cannon's chief of staff.

The audit cost the campaign roughly $10,000 in legal fees. Cannon hired Kirk Jowers, a prominent campaign finance lawyer and the new head of the Hinckley Institute of Politics, to handle the case.

The audits are generally initiated when discrepancies or irregularities are found in a campaign's reports. Cannon's 2004 campaign received a dozen requests from the FEC for clarifications of its reports.

Cannon's campaign treasurer is state Sen. Curt Bramble, who is considering challenging Cannon for his seat next year.

Auditors looked for contributions that exceeded limits, donations from prohibited sources, the consistency and completeness of the records and the disclosure of the contributions and expenditures of the campaign.

The Federal Election Commissioners approved the audit results last week, but the report was not made public until Wednesday.