Q.Which of the following is a valid ground of disqualification for appointment as a company's auditor under Section 141?
(A) The person is a practising Chartered Accountant with no other connection to the company
(B) The person is an officer or employee of the company
(C) The person's audit firm has more than five partners
(D) The person has previously audited a different, unrelated company

Section 141 disqualifies a person from being a company's auditor if they are an officer or employee of that very company — precisely because independence would be compromised.

Section 141 lists several specific disqualifications for a company's auditor, precisely because an auditor must be independent of the entity being audited. Being an officer or employee of the company is one of the clearest disqualifying conflicts of interest named in the section.

Option-by-option analysis:

• (A) Incorrect — being a practising CA with no other connection is exactly the eligibility Section 141 requires, not a disqualification.
• (B) Correct — an officer or employee of the company is expressly disqualified. …