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ram, an accountant, is asked to audit acc Ltd's books. She knows that the audit report will be given to sita to induce her to
ram, an accountant, is asked to audit acc Ltd's books. She knows that the audit report will be given to sita to induce her to invest money in the company (though she has never met sita). The audit is done carelessly, and ram reports that the accounts disclose a true and fair view of the company's financial position when, in fact, they do not. sita and rohan, a friend to whom sita shows the report, both lose money when the company collapses. Is ram liable in negligent misstatement?
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