Competitive Bidding For many decades, CPA firms did not directly compete with one another for audit clients on the basis of fees charged. Competitive bidding was considered unethical. Now, however, competitive bidding is a common practice. How might the change to competitive bidding for audit engagements affect the following?

a. The cost of having your company’s financial statements audited.

b. The quality of audit work done.

c. The securities markets as a whole.