Pious, a Church Minister, asked one of his parishioners Short, an accountant, to prepare the fi nancial statements for the church. Short agreed to perform the service at no charge. He instructed a trainee accountant, Bruce, to do the work but not to spend too much time at it.Bruce immediately worked on the assignment but he did not follow ordinary accounting procedures, which would have revealed that a church employee, Smart Alec, was regularly stealing from the church’s funds. This carried on for two years and the church lost $20,000 due to Smart Alec’s stealing.Required:In relation to the law of obligations explain whether Short would be liable to the church for the sum of $20,000·00 for failing to timeously discover Smart Alec’s fraud. (10 marks)
