On Democracy Deception June 8th, 2009, we talked about quite a few important topics.

• What is a financial audit?
• What is GAAP?
• What is IFRS?
• What accounting standard does the Federal Reserve use? (FAM)
• What was an independent auditor’s assessment of the IRS in 2007?
• What was an independent auditor’s assessment of the Treasury Dept in 2007?
• Corporate language you need to know?
• What is Coso?
• What was an independent auditors disclaimer of their audit of the St. Louis Fed in 2007?
• Much more!

Let’s start with what a financial audit is.

From Wikipedia,

“A financial audit, or more accurately, an audit of financial statements, is the review of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.”

I want to make it very clear that a financial audit will not reveal whether or not a company is part of the government or private– that’s not the focus or point of an audit.

While this may seem obvious to most people, there are those in the Ron Paul camp that believe that “auditing the fed” will reveal that they are private– it will not!

Besides, we already have the list [warning: doc file from .gov website] of who is part of the government. As we talked about on June 1,2009 on Democracy Deception, the Federal Reserve System is private. The only part that is federal is the Board of Governers– that’s it!

The list that I am referring to is one that is maintained by NIST. It is the official list for everyone who is part of the government. In order to obtain a .gov website, you must be on this list.

We will conclude this post in a part two. Stayed tuned!