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The following report has been prepared in order to develop the understanding of the users regarding the various concepts of auditing and assurance services provided by the auditors employed in a business. There are two case studies provided in the report in regard to which various questions have been answered. The questions will include the description regarding the key assertions required in relation to a risk.
Payback period is considered as the length of time which is required for recovering the cost incurred in a project. The payback period thus gives a best estimate about the resources and time required to be invested in a project. The payback period has been considered as an important determinant to take the decision for accepting the project or not.
The study report is based on the 2 journals which are selected for the review of the implementation of the activity-based costing in the organisations. The activity-based costing is a costing method that helps in taking the decision to assign a cost to the services and products of the organisations. The method of costing is activity based and each activity is considered for estimating the final cost of the product.