With reference to accountants liability, which of the following statements is most true?

1. An accountant can be liable to any party damaged as a result of the accountants fraudulent activity, even without a contractual relationship
2. An accountant can be liable to any party damaged as a result of the accountants negligent misrepresentation
3. An accountant cannot be liable to a non-client for professional negligence
4. An accountant is only liable for negligence, with regard to a non-publicly traded company, if the accountant fails to uncover weaknesses in a clients internal controls