CONTENTS Negligent misstatement refers to a representation of fact that been carelessly made, which is relied on the plaintiff to their advantages (O’Riordan, 2007, p.1). In 1964, the tort of negligent misstatement has been established and it has gained more recognition in this decades. It covers opinions and reality statements made by negligence. However, the tort had lead to certain level of floodgate concerns in the early century and today the courts are still less well embrace its liability. In the present day setup, accountants have been regarded as prominence role. They inspect mistreats and irregularities of the company’s financial aspects and protect the benefits of the stakeholders and investors. When the accountants or auditors form a contractual relationship with their potential clients, there are many debatable legal area emerge in respect of the people who possible rely on the company reports made or advices provided in a non
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