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Ron Hira, a professor of public policy at the Rochester Institute of Technology, said that gaps in the rules had allowed technology companies, including American ones, to misuse the program.
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Critics say past presidents misused the program by allowing it to drag on long after the emergencies passed.
The little-noticed program has come under greater scrutiny amid a widening investigation into whether UBS, the world's largest private bank, misused the program to help American clients evade federal income taxes through secret offshore entities.
The audit comes after a series of reports of agencies alleged to have misused the program, including an Arizona Republic investigation, which found that the Pinal County Sheriff's Department had transferred some equipment to non-police agencies, and was planning to sell some other equipment at auction.
Republicans said the Obama administration has misused the program for political purposes, such as funding bankruptcy plans by General Motors and Chrysler that led to government ownership stakes, and has plowed payments back into new initiatives instead of using the money to pay down the federal debt as required under the law.
There are also increasing reports of misuse of the program by companies that are by no means disadvantaged.
The most blatant misuse of the program has been to support large hydropower dam projects, said Mr. McCully of International Rivers.
There is also one very large finding in the report that hasn't received the attention it deserves: "No evidence of intentional misuse" of the program was discovered.
(Later, Judge Kollar-Kotelly rexpressed expressed misgivings about the N.S.A.'s misuse of the program, even shutting it down at one point, when she learned that the N.S.A. might have been overstepping its authority).
During his tenure at the I.R.S., Mr. Korb said he had tried to set up a sophisticated set of procedures to vet complaints because he feared that misuse of the program might bring new complaints about overzealousness by I.R.S. auditors.
Computer security firms rushed to find ways to counteract the misuse of the program, many declaring it a Trojan horse.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com