Worried

So I have a God Daughter. We are closer than I believe most God Parents and their God Children are. Her mother has been my friend since Kindergarten. I'm worried about my God Child. She is not doing well in school. She is talking back in the worse way. She seems to think that she can get away with murder. She thinks that she can speak to anyone, any darn way she chooses and there will be no consequences.
She has been punished. Sent to her room. Has had privileges taken away from her. No tv, radio, stereo, ipod or video games. The behavior improves but shortly after her privileges are restored. It's the same old situation. She's been spoken to by myself and her mother. Asked if she's upset about something. Is something bothering her? She denies any problem. So what do we do? Does she spend the rest of her life in her bedroom?
I think this calls for some divine intervention and the assistance of somebody in the psych field. This child has had some traumatic events happen in her young life. Perhaps certain things are starting to surface now? I don't know. But I am very, very worried. I will be spending the day with her tomorrow. She has off for election day and I will be babysitting. We shall see how she behaves then.
Sighhhhhhhhhhhhhhh.