The contextual analysis depends on the review task of Billy beats Inc., a musical instrument assembling organization, for the year 20X1. Billy thumps procured more diminutive drummer, a drum assembling organization, amid the year. Reasonable Value of plant procured was resolved to be $865. It was designated to the gained resource classes by means of rate of expense system. The assignment of deciding and allotting the reasonable quality was finished by an autonomous valuation master. The administration chose not to change the valuable life assessments of minimal drummer's property plant hardware despite the fact that they contrasted generously from appraisal premise utilized by Billy thumps for its own particular PPE. The case additionally specifies Rock out Inc., another entirely claimed backup of Billy beats, which has become quickly in earlier years through procuring other guitar assembling organizations. Administration of Rock out Inc. rolled out an improvement and reconsidered the bookkeeping evaluation of financial existence of client records, one of its significant elusive resource, in light of the fact that they trusted the new gauge will better mirror the example in which monetary advantage from the client records will be used. The change was connected just to the recently procured client records.
For both Little Drummer and RockOut, determine whether the engagement team performed adequate and appropriate audit procedures considering managements assumptions. (Note that your focus should be on the substantive audit procedures performed, not the accounting treatment nor the control testing.)