Under Section 139(2) (rotation), a listed company cannot reappoint an INDIVIDUAL auditor for more than:
AOne term of 4 years
BTwo terms of 5 years each (10 years total)
COne term of 5 years
DOne term of 3 years
Answer & Solution
Correct answer: D. One term of 3 years
1. Section 139(2): individual auditor - ONE term of 5 years.
2. Audit firm - TWO terms of 5 years (10 years total).
3. 5-year cooling-off period between terms.
_Source: ICAI BoS CA Final Paper 3, Ch 5 "Company Audit"_
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