Martin Baumann to Succeed Phil Wedemeyer as the Director of Research and Analysis

Washington, DC, May 15, 2007

The Public Company Accounting Oversight Board announced today that it has selected Martin F. Baumann as Director of the Office of Research and Analysis, succeeding Phil D. Wedemeyer, who has informed the Board that he will leave the PCAOB at the end of May.

"Phil Wedemeyer’s contribution to the PCAOB, the accounting industry and the public interest are immeasurable," said PCAOB Chairman Mark Olson. "His insight and expertise are threaded into many of the Board’s accomplishments to date."

Chairman Olson added, "Marty Baumann is an excellent fit for the PCAOB’s Office of Research and Analysis. He has helped to broaden the PCAOB’s risk analysis program and is well positioned to assure that his team will continue to help the PCAOB lead the accounting profession into a stronger future."

The Office of Research and Analysis is responsible for the Board’s research efforts, including the identification and communication of audit risk. The office’s analysis supports the Board’s risk-based approach to inspections of registered audit firms, its enforcement actions, and its development of guidance and other outreach efforts with registered audit firms.

Mr. Wedemeyer began his work with the PCAOB in May 2003, very soon after the Board was established. He served as Associate Director, and later, Deputy Director in the Division of Registration and Inspections. Here, he developed and managed the risk-assessment process used by the Board, as well as the PCAOB’s initial policies for audit firms subject to the three-year inspection cycle of and for audits of internal control over financial reporting. In September 2005, he became Director of the Office of Research and Analysis. Prior to joining the PCAOB, Mr. Wedemeyer was a member of the boards of two NASDAQ-listed companies. In 2002 he retired as a partner from Arthur Andersen LLP, after a career of 31 years. He earned a B.B.A. in business administration in accounting from Baylor University.

"I have been a practicing auditor most of my 35-year career," Mr. Wedemeyer said. "I never anticipated the extent to which my four years at the PCAOB would enrich my understanding of the profession and its importance to the capital markets."

Mr. Wedemeyer added, "This is important and truly rewarding work. I know that Marty Baumann’s leadership, and the strong team we have in Research and Analysis, will ensure even greater success in the future."

Mr. Baumann has served as Deputy Director of the Office of Research and Analysis since joining the PCAOB in September 2006. Prior to that, he served as Executive Vice President and Chief Financial Officer of Freddie Mac, beginning in April 2003. At Freddie Mac, Mr. Baumann led the completion of the company’s restatement and related improvements in its financial reporting and disclosure practices. Earlier, his 33-year career at PricewaterhouseCoopers included responsibilities as partner, deputy chairman of the World Financial Services Practice, and global banking leader. Mr. Baumann earned a B.A. in accounting from Queens College, The City University of New York, and an M.B.A. in finance from Baruch College, The City University of New York. He is a certified public accountant in the state of New York.

"The Office of Research and Analysis plays a vital role in supporting the PCAOB’s supervisory responsibilities," said Mr. Baumann. "I am very proud to lead that office and its professionals as we work to continue to fulfill the Board’s mission to build confidence in the integrity and reliability of financial reporting."