Billys Beats Inc. - 671 Words

Case 11-8 Billy’s Beats Inc. Billy’s Beats Inc. (Billy’s), an SEC registrant, is a new audit client with a fiscal year-end of December 31, 2011. Billy’s manufactures musical instruments. Billy’s acquired Little Drummer Boy Inc. (Little Drummer) in 2011 for $575 million in cash. The fair value of significant assets acquired was determined by an external valuation specialist and included property, plant, and equipment totaling $865 million (based on an appraisal of the market prices of similar assets) and other assets totaling $145 million. The useful lives assigned to the property, plant, and equipment acquired were 30 years for the plant and 15 years for the equipment. The useful lives for the plant and equipment already owned by Billy’s†¦show more content†¦This memo was included in the audit working papers, but the working papers did not include any additional documentation from the engagement team. Required: For both Little Drumme r and RockOut, determine whether the engagement team performed adequate and appropriate audit procedures considering management’s assumptions. (Note that your focus should be on the substantive audit procedures performed, not the accounting treatment nor the control testing.) If the engagement team did not perform adequate and appropriate procedures, describe what additional procedures you would have performed. Copyright 2009 Deloitte Development LLC All RightsShow MoreRelatedTrueblood Case Essay712 Words   |  3 PagesSUBJECT: Deciding the Appropriate Extent of Audit Performed for Billy’s Beats for Asset Valuation Billy’s Beats Inc., an SEC registrant, is a new audit client with a fiscal year-end of December 31, 2010. Billy’s is a manufacturer of musical instruments. Billy’s acquired Little Drummer Boy Inc. in 2010 for $575 million in cash. Significant assets acquired included property, plant, and equipment totaling $865 million and other assets totaling $145 million. The useful lives assigned to the propertyRead MoreBilly s Beats1068 Words   |  5 Pagesï » ¿Kevin Oblinger 10/31/14 Billy’s Beats Case Intro Billy’s Beats Inc (Bill’ys) is an SEC registrant manufacturer of musical intraments. Billy’s has recently acquired one company, Little Drummer Boy Inc (Little Drummer), and wholly owns RockOut Inc. Both Little Drummer and RockOut are manufacturers of musical intstraments, making guitars, and drums respectively. Billy’s acquisition of Little Drummer took place in 201X for an outlay of $575 million in cash; an external valuation specialist assessed