Appointment of auditors

 

I had be approached by Pvt Ltd. Company for Tax Audit and Stat audit.

Audit for 31.03.2012 and 31.03.2013 is still pending due to no objection is not given by the previous auditor.

Previous year No C.A. had accepted assignment due to previous Auditor was not giving any NOC.

We had received a Letter for appointment as auditor to audit the accounts. 

Following Questions arising and concerning to us before accepting the assignment,

1. How to Proceed for the appointment? What Procedure to follow?

We are going to write NO Objection Letter to Him.

2. Can he avoid Penalty under 271B?

I required help and support of experts, Please guide me.

 I request Experts to Guide on the Above Quarry.

Thanks in Advance....