You are the audit manager responsible for the financial statements audit of the following four clients. The financial years of all of them end on 31 March 2020: (a) Carnation Company The company has been involved in a lawsuit for the alleged infringement of copyrights. If they failed to defend the case, a compensation of $3 million may be required to be paid as estimated by the legal advisor. Due to the rapid expansion in recent years, the company borrowed over $5 million from three banks. The current financial statements show a net liability position of $2.5 million. As the company has incurred accumulated operating losses in the past few years as a result of economic recession, one major bank is considering not to renew the credit facilities of $2 million currently granted. Required: Explain the going concern assumption and identify three indicators suggesting that Carnation Company may have going concern