Rathi & Co., an audit firm, has completed two consecutive terms of five years each as auditor of a listed company. Under section 139(2) of the Companies Act, 2013, the firm:

Correct answer: C) Cannot be re-appointed as auditor of that company for five years from the completion of its second term

Explanation

Under section 139(2), applicable to listed companies and prescribed classes, an individual cannot be appointed for more than one term of five consecutive years and an audit firm for more than two terms of five consecutive years. After this, they are not eligible for re-appointment in that company for five years (the cooling-off period).