Home › CA Inter › corporatelaws › Auditor Rotation Firm › An audit FIRM in a listed company cannot be re-a…
An audit FIRM in a listed company cannot be re-appointed for more than:
AOne term of 10 years
BThree terms of 3 years each
CTwo terms of 5 years each
DNo statutory cap
Answer & Solution
Correct answer: C. Two terms of 5 years each
1. Section 139(2) — an audit firm cannot serve more than TWO consecutive terms of five years.
2. After the term expires, a cooling-off period of five years applies.
3. Hence (A).
_Source: ICAI BoS CA Inter Paper 2 — Audit and Auditors_