Traditionally, an accountant owes no duty to a nonclient. For instance, an accountant who prepares a financial statement containing material misrepresentation would not be liable to a nonclient, such as a bank, who relied on the financial statement to its detriment. As seen in the Enron/Anderson case, however, the landscape of accountant liability is changing. If the accountant aided in the commission of the fraud, or where the accountant knew the third-party nonclient (e.g., a bank) would be relying on the statements, the accountant may be liable to the nonclient.

Aiding and Abetting a Fraud