As a normal procedure in your audits, you request management of your clients to furnish you a management representation letter including, among other things, representations that the financial statements are presented fairly in all material respects, that there are no material unrecorded liabilities, and so on. One of your clients, T Company, has had a recent change in management soon after the end of the company's fiscal year, December 31. As you are concluding your audit for the year, you ask the new management to sign the normal management representation letter. They respond that they are unwilling to do so because they do not have full knowledge of the company's affairs for the year being audited.

a. Discuss the reasonableness of the new management's position.

b. Under these particular circumstances, would failure to obtain a management representation letter be considered a scope limitation?

c. Draft the audit report you would issue.