What duties are owed by Australian accountants and auditors to their clients ?
A. In Australia, accountants and auditors owe concurrent duties to their clients in contract and in negligence, and to third parties in negligence. Generally, reliance is essential before a duty will be found towards a client, although the accountant or auditor need not have actual knowledge of the reliance placed upon the action or advise by the client. In relation to third parties, it may be sufficient under current Australian law that reliance by a third party was reasonably foreseeable by the accountant or auditor.
