To whom do accountants owe a duty of care under tort law?

Accountants owe a duty of care not only to the companies they work for but also to other parties who might be affected by their work, particularly in the context of tort law and negligence. The responsibility that accountants hold is rooted in the principle of professional duty, which requires them to act with a certain standard of care, being reasonably careful in their professional conduct.

When accountants prepare financial statements, conduct audits, or provide financial advice, their work can impact a variety of stakeholders beyond their immediate employer, including investors, creditors, and the general public. If an accountant fails to meet the appropriate standard of care, resulting in a negligent act, they can be held liable for damages that arise from that negligence, which can affect both the company and external parties.

This broader duty recognizes the interconnections in the business ecosystem, where the actions of one party can have wide-reaching implications across multiple stakeholders. Thus, the legal expectation is that accountants sustain a duty of care to both their employer and any other third parties who may reasonably rely on the accuracy of their professional work.