Yes, I think that this narrative is a confession as Montressor is telling his story to confess to the priest about the murder that he had done.
Montressor is telling the story of his murder of Fortunato which took place during the carnival in Italy because in his story he tells that his family home was a Pallazo.
This story was told by Montresor who is a catholic because he wanted to confess to a priest about the murder that he had committed. The audience of the story is he, himself.
Thus, this could be the answer.
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