Jack is performing the audit on leases of Anglo Ltd for the year ended 31 December 2019. From the ledger, Jack noticed that there are three items, which are on the lease, i.e. a van, a lathe machine and the oven. As part of the audit, Jack would send standard confirmation letters to the lessors. Two days before the end of the fieldwork, Jack received confirmation from the van’s lessor. Jack’s client has had a short payment of the van lease by $10,000. Jack sent the second reminder confirmation and managed to receive the confirmation from the lathe machine's lessor. The lease would only start from 1 January 2020. Jack has to yet to receive any confirmation pertaining to the leasing of the oven.

Requirements:

a) Suggest three (3) actions/procedures that Jack should take in the future to make sure that the confirmation letter will be received and answered promptly.

b) Propose two (2) further actions/procedures that Jack should take for the discrepancies to two of the items listed above.

Answer rating: 100% (QA)

a Three actions that Jack must take to ensure this doesnt happen are 1 Jack having gain the ... View the full answer