SWIFTY CANOE AND KAYAK Swifty Canoe and Kayak (SCK) was founded in 1986 by Bill Swifty, an avid outdoor enthusiast. In 1996, SCK moved from its initial small location to another small town located just on the edge of Algonquin Park in Ontario. Today SCK employs approximately 35 people across three locations in Ontario. In addition to the location next to Alqonquin Park, they have a location in the Muskoka area of Ontario and a third outlet in Georgian Bay. In 2000, Bill Swifty Junior took over the business from his father. SCK remains a private company with 90% of the shares held by the Swifty family (45% by Bill Senior and 45% by Bill Junior). The other 10% is owned by a family friend Freddy Shifty. Freddys son Iffy Shifty was hired late in 2021 as the new Chief Financial Officer (CFO). Iffy started his CPA designation but opted not to finish it. He was hired by Bill as a favour to Freddy. You are the audit manager in charge of the audit for SCK. Your firm, BBJLLP have audited SCK for the past 10 years. It is now December 1, 2022, and your audit partner has asked you to prepare the audit planning memo for the upcoming December 31, 2022, yearend audit. The planning memo must include your initial risk assessments as well as your audit approach and preliminary materiality calculations. Your partner has also asked you to review the interim financial information provided, along with the related information, and provide an assessment of any areas you believe you want the audit to focus on and what you would like to examine. While you do not need to produce specific audit procedures at this time, your partner does want a well written explanation of any issues you see, what the key assertions are for that issue and what you want to do when your audit begins in late January. The Appendices that follow provide more information for you to prepare your planning memo. Required Prepare the memo