The SNP stands to lose more than £1 million in public funding and could be forced to cut staff if it fails to appoint new auditors by the end of next month.
Stephen Flynn, the party's leader at Westminster, offered the bleak assessment today as police continue to investigate the Nationalists' finances.
It was revealed earlier this month the accounting firm the SNP relied on for 10 years had ended its business relationship last year - but many senior parliamentarians were not told at the time.
