The best place to read the process is in American Practical Navigator, otherwise known as Bowditch.
Here is a link to a free download of it from the US Gov...
http://msi.nga.mil/NGAPortal/MSI.po...NONE?_nfpb=true&_pageLabel=msi_portal_page_62
Select American Practical Navigator in the download box.
Select Chapter 6 as that is the one dealing with compasses.
You want to read all of chapter 6, but the nuts and bolts of adjusting the compass are in section 606.
Better yet is to find a copy of Bowditch from the 60's or 70's as this has the method stated better with more pictures, and without the gyro compass reference... These are the best years of the book for those of us on small boats, as they are more aligned with our technology and space considerations.
You can make a simple azimuth circle with a couple of pieces of cardboard.
Another great, and more in depth reference also free is:
https://www1.nga.mil/ProductsServices/NauticalHydrographic/Related Documents/HoMCA.pdf
Have fun!
Guy