Many are probably now aware of the notion that the Federal Reserve needs to be ‘audited’. Like this has never been remotely thought of.

Except, oops, it has.

Money quote:

The Fed is extensively audited, as required by federal law.

More than 425,000 hours each year are devoted to the following:

  • Each Reserve bank has internal auditors who report to the bank’s board of directors. This is similar to the auditing structure used by large corporations in the United States.
  • Board of Governors staff examines activities of the Reserve banks. The Board has oversight authority for the entire Federal Reserve System.
  • Financial statements of the regional Reserve banks and the Board of Governors must be audited every year by an external auditor