The Cake tools to signal errors to the user are session messages and error views.
For "passive" actions like view actions, you should throw a 404 or similar, possibly more specialized error, e.g. if the requested model does not exist:
function view($id) {
$data = $this->Model->read(null, $id);
if (!$data) {
$this->cakeError('error404');
}
...
}
See Error Handling with CakePHP.
For any POST action, you should return the user to the view and display an error message using $this->Session->setFlash('Error!')
and appropriate error messages for each invalid form field. That's the default behavior of baked views and controllers.
Terminating the whole script with exit
makes for a miserable user experience.