As others have already pointed out, the Fed is independently audited by one of the big public accounting firms. For the past few years, that has been Deloitte and before that is was PriceWaterhouse Coopers. These independent audits are required by law (see 12 USC §248b ) The independent audits are a part of the Federal Reserve's annual reports to Congress. Obviously, these reports have been viewed by Ron Paul. ETA: The annual reports for the last several years are available online at the Federal Reserve Board of Governors websiteAFTP wrote:What throws up a red flag to me is that the Fed has never been audited.
Some like Ron Paul want that but it seems that others are scared to mess with them.
As Demo has pointed out, the GAO also performs audits of the Federal Reserve though these audits are restricted by the FOUR limitations in 31 USC 714. Some of those restrictions (deliberations, discussions, communications, etc.) wouldn't normally be a part of an audit anyway, though there are instances where such things would be considered.
Ron Paul's "audit the fed" crusade is simply a part of his effort to have monetary policy be transferred to Congress. He tried for many years to get a bill disbanding the Federal Reserve with no luck. For the past few years, he switched to a bill that his followers call "audit the fed" and he has had a little more success with that (by getting more co-sponsors), especially with the economic situation of the past few years. In the end, it only gets traction because of quick catch-phrases and people are uneducated about the Federal Reserve and its actions.
Since I know that Ron Paul has seen the independent audits and he still calls for his "audit the fed" bill, it is obvious to me that Ron Paul is a pompous and arrogant nutcase who thinks he knows better than every modern economist and everybody else.
ETA2: For any Ron Paul supporters out there, I apologize if my opinion of Ron Paul offends or upsets you. However, it is my opinion, I am entitled to it, and I believe that Ron Paul's actions provide ample evidence for my opinion.