JA: Fran, I don’t want to sound harsh, but we really need to wrap up all the outstanding audit work ASAP. Hillsburg has scheduled a Board of Directors meeting for next week. The Board wants to sign off on the financial statements. I am going to ask Lisa to draft the audit opinion. Have you finally received the outstanding account receivable confirmations?
FM: No. I am following up on the outstanding confirmations every day.
JA: And?
FN: And, nothing. No response. I told you, those businesses are shut down due to COVID-19 restrictions. I don’t know what else I can do.
JA: Well, did you try calling them?
FM: Yes, numerous times.
JA: Did you email them?
FM: Yes, multiple times, and no response. Joe, you need to understand that with all the COVID-19 stuff going on right now, responding to account receivable confirmations is not on people’s priority lists.
JA: How many confirmations are still outstanding?
FM: About 60 percent of our sample.
JA: What!? Did you try to do any alternative procedures?
FM: Yes, we looked at subsequent receipts of cash; however, only a couple of Hillsburg’s customers paid. Most of the businesses are closed.
JA: Yeah, even if they were open, I doubt anyone wants to be making payments right now. Cashflow is tight.
FN: This doesn’t mean that they won’t pay off their outstanding balances once COVID-19 restrictions are eased and business picks up again.
JA: I know. That’s why it’s so hard for me to figure out and get comfort over the allowance for doubtful accounts that Hillsburg wants to book. We’ve never faced such a situation before. The worst part is that the accounts receivable balance is tied to a loan covenant. So, I know that the bank will be looking at this balance once the statements are published. I just don’t know what to do.
FN: I wish that I could help. We can’t even obtain any of the shipping documents to verify the sales that are associated with these outstanding AR balances. All of that documentation is in that warehouse, where the COVID-19 outbreak happened. The whole place is shut down and off limits until the Ministry of Labour and Public Health complete their investigation, and who knows how long that will take.
JA: Fran, you have three or four days left to get a reply to these outstanding accounts receivable confirmations.
FM: I know, I know. I will keep trying.

QUESTION
REQUIRED
Why and what modification (s) to the opinion in the independent auditor’s report would Joe have to make if Fran is unsuccessful in obtaining a response to the outstanding account receivable confirmations?