Regarding interim financial statement reviews, the standards do not require auditors to understand the client's accounting and financial reporting practices and its related internal controls over the preparation of annual and quarterly reports, since they are not expressing an opinion.

Question

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According to auditing standards, auditors are required to understand the client's accounting and financial reporting practices and its related internal controls over the preparation of annual and interim financial statements, including reviews. This understanding assists in evaluating the risk of material misstatement and designing appropriate audit procedures.

Regarding Interim Financial Statement Reviews, the Standards Do Not Require