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

Question

Quizplus · Accepted Answer

The manager was describing an assurance engagement, where the auditor provides an independent opinion or assurance on the subject matter, in this case, the financial statements, to the users, in this case, the shareholders.

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