Report of Independent Auditors

To the Shareholders and
Board of Trustees of Scudder Funds

In planning and performing out audits of the financial statements of the Scudder
Funds  listed in  Exhibit A attached  hereto  (the  "Funds")  for the year ended
August  31,  2001,  we  considered   their  internal   control   activities  for
safeguarding  securities,  in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the requirements of Form N-SAR, not to provide assurance on internal control.

The  management of the Funds is responsible  for  establishing  and  maintaining
internal control. In fulfilling this responsibility,  estimates and judgments by
management  are  required to assess the expected  benefits and related  costs of
controls.  Generally,  controls  that are  relevant  to an audit  pertain to the
entity's objective of preparing financial  statements for external purposes that
are  fairly   presented  in  conformity  with  generally   accepted   accounting
principles.   Those  controls   include  the   safeguarding  of  assets  against
unauthorized acquisition, use, or disposition.

Because of inherent  limitations in internal  control,  error or fraud may occur
and not be detected.  Also,  projection of any evaluation of internal control to
future periods is subject to the risk that it may become  inadequate  because of
changes in conditions or that the  effectiveness of the design and operation may
deteriorate.

Our consideration of internal control would not necessarily disclose all matters
in  internal   control  that  might  be  material   weaknesses  under  standards
established  by the  American  Institute  of  Certified  Public  Accountants.  A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk  that  misstatements  caused  by error or fraud in  amounts  that  would be
material in relation to the financial statements being audited may occur and not
be  detected  within a timely  period  by  employees  in the  normal  course  of
performing  their assigned  functions.  However,  we noted no matters  involving
internal  control  and  its  operation,   including  controls  for  safeguarding
securities,  which we consider to be material  weaknesses as defined above as of
August 31, 2001.

This report is intended solely for the  information  and use of management,  the
Board of Trustees of the Funds and the Securities and Exchange Commission and is
not intended to be and should not be used by anyone  other than these  specified
parties.



                                                         /s/Ernst & Young LLP


                                                         Ernst & Young LLP

Boston, Massachusetts
October 15, 2001






Exhibit A

Scudder California Tax-Free Income Fund
Scudder Floating Rate Fund
Scudder Florida Tax-Free Income Fund
Scudder Focus Growth Fund
Scudder New York Tax-Free Income Fund
Scudder Research Fund
Scudder S&P 500 Stock Fund