Microphone not available on remote machine when connecting by IP

My remote computer is running TeamViewer Host on Windows 7.

When I connect to it over the internet, I am able to enable the microphone on the remote computer.

But when I connect to it over the LAN using its IP address, there is no option on the remote computer to enable its microphone.

The screenshot below shows the TeamViewer control panel of the remote computer. Notice how there is no button for showing the audio options.

teamviewer_control_panel.png

How can I get the microphone to become enabled? Again, I am able to use the micrphone when connecting over the internet, but not over LAN. Why is this?

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