Assignment task:
Andrew graduated from Western Sydney University with a Master of Professional Accounting and now works as an accountant for an accounting business, Summerton Accountants Pty Ltd. Betty , who has a successful toy manufacturing business, is in negotiations to possibly buy a competing toy manufacturing business, Toy Town Pty Ltd , that is up for sale, to expand her existing business. She engages Summerton Accountants to assess Toy Town's financial situation. Andrew is handed the project and starts by obtaining copies of Toy Town's business accounts and financial statements.
After discussing with the head of the firm, he hires Veronica, a land valuer the company sometimes uses, to assess the current market value of Toy Towns factory land and buildings. Veronica completes her valuation report valuing the property at $410,000. Andrew finalises his financial report. However, due to a typing error, Andrew's report states that the property value is $510,000. After getting 'sign off' from his supervisor, he sends a copy of his report to Betty with Veronica's report attached.
Betty later buys Toy Town's business but then discovers the error in Andrew's report. Betty is very unhappy.
Advise the various parties on their legal rights and liabilities, including possible remedies, referring to any relevant cases and legislation. Please use the ILAC method (ie, Issue, Law, Application and Conclusion) to answer the assignment questions.