Martha Minnati Was Reviewing the Previous Year's Audited Financial Statements

question 19

Multiple Choice

Martha Minnati was reviewing the previous year's audited financial statements of a clothing manufacturer. Her manager explained to her that for a financial statement audit, the clothing company was the accountable party, its shareholders were the users, and the subject matter was the financial statements. What kind of audit engagement was her manager describing?

• A) consulting engagement
• B) assurance engagement
• C) review engagement
• D) compliance engagement

---

Definitions:

Rescinds Contract

The act of officially cancelling or terminating a contract by mutual agreement of the parties involved or due to some legal reason.

Other Party

In legal or contractual language, this term refers to an entity or person aside from the one being directly addressed or previously mentioned.

Duress

A scenario in which an individual engages in an action due to being subjected to force, intimidation, or other forms of coercion.

Coercion

The act of compelling a party to act in an involuntary manner by use of threats, force, or pressure.