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A listed company cannot re-appoint an individual auditor for more than:
ATwo terms of 5 years each (10 years total)
BOne term of 5 years
CThree terms of 3 years each (9 years total)
DNo statutory cap
Answer & Solution
Correct answer: B. One term of 5 years
1. Section 139(2) — an individual cannot serve as auditor of a listed company for more than ONE TERM OF FIVE consecutive years.
2. An audit firm gets two terms of five years.
3. Hence (A).
_Source: ICAI BoS CA Inter Paper 2 — Audit and Auditors_