The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense 20 Increase in deferred tax asset 5 Gain on sale of assets 35 Decrease in long-term debt 50 Increase in inventories 25 Decrease in accounts payable 15

Which of the following statements best represents the reason why auditors prepare engagement letters to be signed by their auditees?

A) They provide documentation of management's responsibility for the financial statements. B) They document the audit fees and deadlines that have been agreed upon. C) They communicate and clarify the expectations and responsibilities of both the auditee and the auditor. D) They help to limit auditor liability in the event of misunderstandings.

Donating money to social causes would fall under which of the responsibilities of corporate social responsibility?

A) Philanthropic B) Ethical C) Economic D) Financial