You are part of the audit team auditing the financial statements of Monckton Ltd for the year ended 30 April 2021. As part of the audit planning, you are applying analytical procedures to the draft financial statements. As a result of the calculations, you have selected the following as requiring further investigation:

Required:
For each ratio:
(a) Suggest an explanation for the change in the ratio in the financial year just ended that you would consider reasonable.
(b) Explain how the change in the ratio could be caused by misstatements in the 30 April 2021 financial statements.
(c) Describe substantive tests of details that would be necessary to detect possible misstatements.

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Ratio (i) Days sales in accounts receivable (ii) Inventory turnover (times) (iii) Plant and machinery depreciation expense as a percentage of cost (iv) Repairs and maintenance expense to revenue 2021 56 10 11% 4.5% 2020 38 13 14% 2.0% 2019 41 14 14% 1.5% 2018 39 13 13% 2.2%