Freddie Mac Drops Andersen as Auditor

Mortgage giant Freddie Mac dropped Andersen as its auditor after a 30-year association, the latest prestigious client to distance itself from the accounting firm tainted by the Enron Corp. scandal.

The move comes less than a week after Merck & Co. dropped Andersen as its auditor and less than a month after SunTrust Banks Inc. did the same.

Virginia-based Freddie Mac said its board replaced Andersen with PricewaterhouseCoopers as its independent public accountant for the year ending Dec. 31, 2002. The mortgage-buying organization said it will retain Andersen as a consultant.