You have performed an audit of Carney Wholesalers and performed significant analytical procedures, especiallyin the calculation of ratios and trend analysis. During the course of your audit, your calculations revealed the following unusual items.

a	Commission expense as a percentage of sales has been constant over the past several years. However, in the current year, the percentage has increased significantly, although commission rates have not changed.
b	The inventory turnover ratio has declined steadily over the past four years.
c	Inventory as a percentage of current assets has increased steadily over the past four years.
d	The days sales in accounts receivable ratio have increased steadily over the last three years.
e	Allowance for doubtful accounts as a percentage of accounts receivable has declined steadily over the past three years.
f	The dollar amounts of depreciation expense and depreciation expense as a percentage of the gross property, plant, and equipment assets have significantly decreased from the preceding year.

REQUIRED: (1) For each of the items listed above indicate the potential impact they could have on the fair presentation of the financial statements for Carney Wholesalers.

(2) Indicate a follow-up procedure that an auditor could use to detect a potential material misstatement in the financial statements for CarneyWholesalers for the items listed above