Lawsons Ltd is an IT maintenance company located in Wales. The company has contracts with a number of schools and colleges as well as local businesses. The company has been trading for 15 years and is run by Chris Freeman who is also the majority shareholder. The company is exempt from statutory audit but Chris has appointed auditors in respect of the year ended 31st March 2019 because he needs audited accounts before meeting with his bank to discuss options for funding his growth. Chris employs two full-time administrators and has three full-time and two part- time IT engineers working with him. Chris is very involved in the service side of the business, far more than the administrative side. The company is run from a small office bought in 2007 for 300,000 which is still its value in the financial statements. A similar property nearby sold recently for 185,000. Chris is responsible for following up on all enquiries and quoting for work. He visits all potential clients and offers them on the spot quotations. The quotes are recorded in his diary and passed on verbally to the office. If the quote is accepted then Chris either takes the job himself or allocates it to one of the other engineers. All engineers must keep an online diary detailing their visits. Once the work is complete a work summary is prepared by the engineer, signed by the customer and then passed to the office administrators who will raise an invoice. No credit checks are carried out on new customers and although the invoices all state payment is to be made within 30 days, there is no credit control carried out. During the company audit in respect of the year ended 31st March 2019 the audit junior found four work summaries for work carried out but had not been invoiced. The estimated invoice value is 35,000. In addition the audit work discovered that of the 150,000 trade receivables owed to the company at the year-end, 40% had been outstanding for more than 30 days and half of these were more than 90 days overdue. Required: a) Identify the internal control weaknesses in the sales system at Lawsons Ltd and the subsequent risks to sales and trade receivables as a result of these weaknesses. Make recommendations to rectify the weaknesses identified. (15 marks) b) What risks are associated with the valuation of non-current assets and what audit work should an auditor take in response to these risks? 9/0072 Page 2 of 6 (10 marks)