Under section 141(3)(g), a chartered accountant is disqualified from being appointed auditor of a company if, at the date of appointment, he is:

Correct answer: B) Holding appointment as auditor of more than twenty companies, not counting one person companies, dormant companies, small companies and private companies having paid-up share capital below the limit specified in that clause

Explanation

Section 141(3)(g) disqualifies a person who is in full-time employment elsewhere, or a person or partner of a firm who, at the date of appointment or reappointment, holds appointment as auditor of more than twenty companies. One person companies, dormant companies, small companies and private companies with paid-up share capital below the limit stated in the clause are not counted towards the twenty. There is no limit of ten companies, no prohibition on auditing competitors and no minimum years of practice under the Act.