Susan has been pulling together support for Skyline's audit, including materials on LI's financial statements. The auditors have requested documentation on LI's subsequent events. Specifically, they are interested in the minutes from LI's board meetings.

However, LI's record-keeping, including board meeting minutes, has proven to be weak. In addition, there is a lot of tension with management because the controller of LI is not happy about the acquisition and some of the changes that Skyline plans to implement. LI's controller has indicated that he will not let Skyline's auditors speak to LI's lawyers.

Susan is worried about what might happen if the auditors are unable to obtain the evidence they ask for.

Required:

1. How would Skyline's audit report may be impacted if the auditors are unable to obtain the evidence they've requested

2. Provide a recommendation on how to proceed.