1. Distinguish between misstatements due to error and misstatements due to fraud and explain the auditor's responsibilities for the detection of both.

2. Discuss the 5-step process for planning, performing, and evaluating ADAs from the CPA Canada Guide.

3. Assume you are currently planning an audit for a profit-orientated small enterprise business (private). List 3-4 examples of potential users of the financial statements. The engagement partner has asked you to calculate the relevant materiality amounts for the audit (Materiality, PM, AMPT). Assume the relevant benchmark is based off on Net Income before Tax, and the amount is $1,000,000.

auditing