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[The following paragraph was effective for interim periods within fiscal years beginning after December 15, 2002. It was amended, effective for audits of fiscal years beginning on or after December 15, 2012. See PCAOB Release No. 2012-004.

Return to the current version.]

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The accountant should establish an understanding with the client regarding the services to be performed in an engagement to review interim financial information. fn 6 Such an understanding reduces the risk that either the accountant or the client may misinterpret the needs or expectations of the other party. This understanding should include the objectives of the engagement, management’s responsibilities, the accountant’s responsibilities, and the limitations of the engagement. The accountant should document this understanding, preferably through a written communication with the client. If the accountant believes an understanding with the client has not been established, he or she should decline to accept or perform the engagement.