September 13, 2007

Center for Audit Quality Announces Appointment of Public Board Members

~~ Harvey J. Goldschmid, Michele J. Hooper and Lynn S. Paine 

join the CAQ’s Governing Board~~

Washington, D.C. --The Center for Audit Quality (CAQ) today announced its first public board members: Harvey J. Goldschmid, former U.S. Securities and Exchanges Commission commissioner, Michele J. Hooper, co-founder of The Directors’ Council; and Lynn S. Paine, professor of business administration at the Harvard School of Business. These new members will bring an outside perspective to the CAQ board and its commitment to the concept that a robust public company auditing profession is fundamental to the public interest and the capital markets.

“We are excited to have the collective background and the expertise of these new board members added to the Center for Audit Quality, and look forward to the increased vibrancy of discussion their outside viewpoints will bring,” said Cindy Fornelli, executive director of the CAQ. “The diverse public interest perspectives of these three outstanding individuals will allow us to broaden our direction and growth, as well as expand dialogue on investor needs, the capital markets and audit quality.” 

The Center for Audit Quality is made up of approximately 800 public accounting firms and led by a Governing Board that comprises leaders from the public company auditing firms, the American Institute of CPAs and the investor and issuer communities. The public auditing profession believes that it is important to include individuals on the CAQ’s Governing Board who can represent a broad public perspective that goes beyond the profession’s leadership.

The CAQ Governing Board also consists of Barry C. Melancon, President and CEO, AICPA; Jack Weisbaum, CEO, BDO Seidman LLP; Charles M. Allen, CEO, Crowe Chizek and Company LLP; Barry Salzberg, CEO, Deloitte & Touche USA LLP; James S. Turley, Chairman and CEO, Ernst & Young LLP; Ed Nusbaum, CEO and Executive Partner, Grant Thornton LLP; Tim P. Flynn, Chairman and CEO, KPMG LLP; Dave Scudder, Managing Partner, McGladrey & Pullen LLP; Dennis M. Nally, Chairman and Senior Partner, PricewaterhouseCoopers LLP.

Bios of, and quotes from, the newest Governing Board members follow:

Harvey J. Goldschmid served as a commissioner of the SEC from 2002 to 2005, as the SEC’s general counsel from 1998 to 1999, and as special senior advisor to Chairman Arthur Levitt from Jan. 1 to July 15, 2000. Today, Goldschmid serves as Dwight Professor of Law at Columbia University, a position he has held since 1984 and where he has taught since 1970. He is also senior counsel at the law firm of Weil, Gotshal & Manges. 

He received the 2004 Lawrence A. Wien Prize for Social Responsibility from Columbia University, the 1999 Chairman’s Award for Excellence from the SEC, and several teaching awards, including Columbia Law School’s Willis L.M. Reese Award for Excellence in Teaching in both 1996 and 1997.

Goldschmid received his juris doctor from the Columbia Law School and a bachelor of arts from Columbia College.

“Having been responsible for the oversight of our financial markets, I applaud the Center for Audit Quality’s investor-focused mission and look forward to playing an active role in its governance,” said Goldschmid.

Michele J. Hooper is co-founder and managing partner at The Directors’ Council, a firm that specializes in corporate board of director recruitment and board advisory services. Hooper previously served as president and CEO of Stadtlander Drug Company, Inc. Before that she was appointed corporate vice president, Caremark International Inc., and president of the International Business Group. She has held various senior management positions at Baxter International, including president of Baxter Canada. 

Hooper currently serves on the boards of directors of three corporations and chairs the audit committees for two. She is on the board of the National Association of Corporate Directors (NACD) and is president of NACD, Chicago Chapter.

Hooper holds a bachelor of arts in economics from the University of Pennsylvania and a master of business administration from the University of Chicago. 

Hooper said, “My long service as an independent audit chair and career in board recruitment have reinforced my belief in reaching out to individuals beyond the firm or profession in question. The CAQ’s commitment to a dialogue that encourages such ‘outside-in’ thinking is to be commended.” 

Lynn S. Paine is a John G. McLean Professor at the Harvard School of Business, where she is a member and former chair of the general management unit. Paine’s research focuses on the leadership and governance of companies that meld high ethical standards with outstanding financial results. Prior to joining the Harvard faculty, Paine served on the faculties of Georgetown University’s business school, the University of Virginia’s Darden School of Business, as well as National Cheng Chi University in Taiwan, where she was a Luce Scholar.

Currently, Paine heads the faculty interest group on ethics, law and leadership and chairs the required MBA course on leadership and corporate accountability. She is a member of the academic council of the Hills Program on Governance and served on the Conference Board’s Blue-Ribbon Commission on Public Trust and Private Enterprise in 2002. 

A summa cum laude graduate of Smith College, Paine holds a doctorate in moral philosophy from Oxford University and a law degree from the Harvard Law School.

“I’m hopeful my research on leadership and governance will be of benefit to the CAQ as it charts a course for the future – one that serves the interests of investors and public company auditors alike,” Paine remarked.