Refer to Exhibit 14.3 and review the analytical procedure results and trends. Presumably, Sue Sachdeva knew that the auditors might ask pointed questions about the financial results and odd analytics apparent in the data from FYE 2004 to FYE 2009. For each of the trends listed here, describe how you think Sachdeva might have tried to explain away the issue (because, of course, she would not admit to the fraud). Indicate how a professionally skeptical auditor might have responded to her explanations.

Cash balances have declined to their lowest level since FYE 2004. Sales increased over the period, but have returned to about FYE 2004 levels. Cost of goods sold as a percentage of sales has risen sharply over the period, with a particularly significant increase from FYE 2008 to 2009. Relatedly, gross profit has decreased sharply over the period, with a particularly significant decrease from FYE 2008 to 2009. SG\&A as a percentage of sales has risen sharply over the period, with a particularly significant increase from FYE 2008 to 2009. Net income as a percentage of sales has decreased sharply over the period, with a particularly significant decrease from FYE 2008 to 2009. Accounts receivable as a percentage of sales has remained relatively stable over the period, so there do not appear to be problems in billing or collections. Current liabilities as a percentage of sales has remained relatively stable over the period, so there do not appear to be problems in the purchasing cycle. Cash balances have declined to their lowest level since FYE 2004. Sales increased over the period, but have returned to about FYE 2004 levels. Cost of goods sold as a percentage of sales has risen sharply over the period, with a particularly significant increase from FYE 2008 to 2009. Relatedly, gross profit has decreased sharply over the period, with a particularly significant decrease from FYE 2008 to 2009. SG\&A as a percentage of sales has risen sharply over the period, with a particularly significant increase from FYE 2008 to 2009. Net income as a percentage of sales has decreased sharply over the period, with a particularly significant decrease from FYE 2008 to 2009. Accounts receivable as a percentage of sales has remained relatively stable over the period, so there do not appear to be problems in billing or collections. Current liabilities as a percentage of sales has remained relatively stable over the period, so there do not appear to be problems in the purchasing cycle