Our friend Jr. Deputy Accountant gets linked in the FT's Alphaville for this post.
For the record, I disagree with JDA's view on this one. I see her argument as that the Fed's accounting standards are so twisted that to perform an audit would be an excercise in futility. To me, that's like saying the cops shouldn't have read the Unibomber's manifesto because it's so insane it can't possibly have any clues, or the cops shouldn't search the home of a mastermind serial killer because he's obviously smart enough to hide all the evidence. You still want to raid the place and hope he missed something. And the Fed's vast financial dealings are so complex that they can't have covered all their tracks perfectly. We may never be able to make complete sense of all the books, but I guarantee there would be some giant scandalous headlines coming out of a full rectal exam of the Fed.