Lilly approached Narelle, an accountant, and asked her advice as to the financial position and profitability of a business that Lilly was considering investing in. Narelle prepared a report for Lilly and concluded that it would be a profitable and secure investment. In preparing the report, Narelle overlooked the fact that the business had not provided sufficiently for bad debts. Lilly invested her money in the business, but within 3 months the firm was in serious financial difficulty and Lilly lost the bulk of her investment.

Does Lilly have any claim against Narelle? Explain in detail, outlining the elements of negligence and the relevant case law. Use IRAC method to solve the question.