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Word's track changes facility enables you to send a document to another person so they can amend it and you can easily incorporate their changes into the document when it is returned.  Changes are marked by underlining and underscoring in a different colour and you can choose to accept or reject the changes when the document is returned to you.

To start tracking changes you need to protect your document for tracked changes, if you only want authorised people to change the document then you can set a password for them to enter in order to edit it but take care not to forget the password!  To protect a document for tracked changes, click on Tools -> Protect Document and then select Tracked Changes in the window that appears before clicking OK.

When you have protected your document you can then send it to the person who is going to review it, the easiest way to do this is to click on File -> Send To -> Mail Recipient (as attachment).

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When the recipient receives the document they can make their changes.  As they do so, the changes are marked in colour and symbols show deleted or added text.

If you want to change the way the revised text is marked you can click on Tools -> Options and use the Track Changes section to set the formatting.

If you mark deleted text with # instead of strikethrough then you will not see the original text, this can help to keep confidentiality.

When the reviewer has made the changes they can send the document back to the original author who can then use the Reviewing Toolbar to accept or reject the changes.