RECOMMENDED!!MANAGEMENT 200909-it is apparent that Jacob relied on the books

  

it is apparent that Jacob relied on the books of account prepared by Water Accounting services in purchasing the Sport`n Surf retail clothing business. These books of accounts had an error as they reported a profit of 120,000 USD instead of 12,000 USD for the previous year. This is what mainly made Jacob to accept the purchase price of 250,000 USD for the business only to realize after one year that the real profit was 12, 000 USD. By the fact that the error was committed by Water Accounting services, they owed Jacob a duty of care and he can sue them for preparing misleading information.

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