The Wallabies were thrashed 54-34 in their Rugby Championship opener in Sydney last weekend, with only a late revival once the All Blacks had already run riot salvaging any pride.
Australia legend Lynagh tore into their performance on Sky Sports, saying their skills were "non-existent".
Cheika's side have the opportunity for revenge in Dunedin this weekend in the second Bledisloe Cup Test.
The Wallabies coach said there is little they can do to alter Lynagh's opinion aside from showing an improvement on the pitch.