Historically,privity of contract was not a requirement for a cause of action based on an accountant's liability for negligence.

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Historically, privity of contract was a requirement for a cause of action based on an accountant's liability for negligence. In other words, only those with whom the accountant had a contractual relationship could sue for negligence. However, this has since been expanded to allow for third-party beneficiaries and those with a known and intended reliance on the accountant's work to also bring a cause of action for negligence.

Historically,privity of Contract Was Not a Requirement for a Cause