Case- 1(B) You are the audit manager covering the year-end audit of Lemon LLC that manufactures laptops mainly for students' educational purposes. Lemon LLC is a start-up company and is just 3 years old. The Company is at loss in all the three years and half of its networth has been eroded or wiped out due to losses. As the company is experiencing liquidity issues it could not pay its debts when they became due. This issue may continue during the current year and it is expected to be much more uncertain in the oncoming years. The Company's operation will be affected without significant fresh investment from the management at present and the management does not take any decision to solve the issues yet on its behalf. There are pressing creditors who need to be settled as at year end & it is not clear how they will be settled. You are reviewing the audit files before sending them to the audit partner for final review. Some specific points have been drawn to your attention by the audit staff. a) The company has not made provision of certain trade receivables which are material. The company anticipates that the amounts are collectible. b) There is a significant issue in the delivery of service to the clients. The management has not considered this issue in their evaluation of sales and The full amount or part of the sales amount seems to be doubtful of recovery due to the inappropriate evaluation of the management. c) Some receipts from the clients have been suppressed which includes sale of scrap and repairing charges of laptop. Qn-1 Required What actions/recommendations will you make to the audit partner regarding the above three issues