Newburg Company is in an industry in the early development stage, where there are minimal barriers to entry to the client's business model. Newburg Company's audit committee decided to put their 2014 audit out for bids. One of the Big Four CPA firms had performed their audits from 2011-2013, and although happy with the previous auditor, the audit committee believed they should rotate to another firm. On the last audit, the Big Four's audit fees were $500,000. Barnaby, CPAs, came in as the low bidder, making a proposal to Newburg Company regarding audit fees for 2014 . Their proposed audit fee was $250,000