You are a senior auditor at CPA LLP. This year, your audit client is Burnaby Wholesalers Ltd, a Canadian public listed firm that distributes building materials, hardware, gardening, and related products to retail stores that service the "do-it-yourself" home improvement market. The audit engagement team includes you, one engagement partner, three junior auditors, and two senior auditors. The fiscal year-end under audit is December 31, 2021. Prior to the current fiscal year, Burnaby Wholesalers was audited by another public accounting firm, but the client changed auditors in early June 2021 because management was dissatisfied with the predecessor audit firm's high audit fee and lack of timely service. During the audit of Burnaby Wholesalers, you encounter the following scenarios. Please respond to each scenario and include your discussions in one PDF document. 7. As part of the audit completion procedures, you read a draft of management's discussion and analysis (MD&A) of the company's operations for the year that will be included in the company's annual report to shareholders. In the MD&A, management acknowledges that past operations have been less than successful than expected but forecasts a major turnaround next year because of an expected improvement in sales volumes due to an anticipated increase in demand. In general, you find that the MD&A shows a very optimistic view of the company. You have assessed the ability of the company to continue in business as a going concern and concluded that it is very likely to be able to operate for several more years without new financing, but that its long-term economic prospects may be poor and that management needs to re-evaluate the company's entire business model. Please suggest what actions would you take under this scenario (4 marks).