Rose & Co., LLP, has completed the audit of the financial statements of Bale & Booster, a partnership, for the year ended December 31, 1999. The financial statements were prepared on the income tax (cash) basis and include footnotes indicating that the partnership was involved in continuing litigation for alleged infringement of a competitor's patent. Damages, if any, resulting from the litigation could not be estimated as of the last day of field work. Prior year financial statements were not presented.

Required: 

Draft an audit report.