Scenario $3$:

Swell Computers is a public company lat manufactures desktop and laptop computers. The components of the financial statements are $(1)$ income before taxes $=$$$500,000,(2)$ total assets $=$$$2\mathrm{.}2$ billion, and $(3)$ total revenues $=$$$7$ billion.

a$.$ Determine overall materiality and tolerable misstatement. Justify your decisions.

b$.$ During the course of the audit, Swell's CPA firm detected one misstatement that resulted in an overstatement of income by $$1\mathrm{.}5$ million. Evaluate the audit findings. Justify your decisions.