Freddie Mac 2010 Annual Report Download - page 334

Committee pre-approve any audit services, and any non-audit services permitted under applicable law, to be performed by
our independent auditors (or to designate one or more members of the Audit Committee to pre-approve such services and
report such pre-approval to the Audit Committee).
Audit services that are within the scope of an auditor’s engagement approved by the Audit Committee prior to the
performance of those services are deemed pre-approved and do not require separate pre-approval. Audit services not within
the scope of an Audit Committee-approved engagement, as well as permissible non-audit services, must be separately pre-
approved by the Audit Committee.
When the Audit Committee pre-approves a service, the Audit Committee typically sets a dollar limit for such service.
Management endeavors to obtain pre-approval of the Audit Committee, or of the Chairman of the Audit Committee (when
the Chairman of the Audit Committee has been delegated such authority), before it incurs fees exceeding the dollar limit. If
the Chairman of the Audit Committee approves the increase, the Chairman will report such approval at the Audit
Committee’s next scheduled meeting.
The pre-approval procedure is administered by our senior financial management, which reports throughout the year to
the Audit Committee. The Audit Committee pre-approved all audit, audit-related, tax, and other services performed in 2009
and 2010.
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