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SSC Audit Tax Finance P-II QUESTION #6212
Question 1
Under Section 254(3) of the Companies Ordinance 1984, which of the following scenarios creates a legal disqualification for an auditor?
  • A person who was a director of the company 5 years ago
  • A person who is a Chartered Accountant with a QCR rating
  • A person whose spouse holds shares in the client company but fails to disinvest within 90 days✔️
  • A person who provides tax management services to the company
Correct Answer Explanation
While a person holding shares can be appointed, they must disinvest within 90 days. Failure to do so results in disqualification. Directors are only disqualified if they held office within the last three years.