Guss"So the Fed...is a private entity that cannot...(by US...

Guss

"So the Fed...is a private entity that cannot...(by US law?)
be audited or scrutinised by the US Government?"

Two minutes research shows that the Fed is audited by the Government Accountability Office (GOA).

http://www.federalreserve.gov/faqs/about_12784.htm
http://www.gao.gov/

"The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for Congress. Often called the "congressional watchdog," GAO investigates how the federal government spends taxpayer dollars. The head of GAO, the Comptroller General of the United States, is appointed to a 15-year term by the President from a slate of candidates Congress proposes. Gene L. Dodaro became the eighth Comptroller General of the United States and head of the U.S. Government Accountability Office (GAO) on December 22, 2010, when he was confirmed by the United States Senate. He was nominated by President Obama in September of 2010 from a list of candidates selected by a bipartisan, bicameral congressional commission. He had been serving as Acting Comptroller General since March of 2008."