Under Section 141 Companies Act 2013, a person is DISQUALIFIED from being appointed as auditor of a company if:

1. Section 141(3) Companies Act 2013 lists disqualifications: (a) a body corporate other than an LLP; (b) an officer or employee of the company; (c) a person in the employment of an officer or employee of the company; (d) a person or partner of firm holding appointment as auditor of more than 20 companies (other than OPC, small companies, dormant companies, etc.); (e) a person who has been convicted by a court of an offence involving fraud and 10 years not elapsed; (f) any person whose subsidiary/associate or any other form of entity is engaged on the date of appointment in consulting and specialised services as provided in section 144; (g) a person who, or his relative or partner — (i) is holding any security or interest in the company or its subsidiary/holding/associate; provided that relative may hold security of face value not exceeding Rs 1,00,000; (ii) is indebted to the company in excess of Rs 5 lakh; (iii) has given a guarantee in excess of Rs 1 lakh; (h) a person or firm which has a business relationship with the company. 2. Hence option A is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 141(3)_