Sir, as per SA 315 -assessment of risk is done by inquiries of mgmnt, analytical procedures and pbservation & inspection. Sir but can you say practically what auditor does, like, what he specifically inquires or observes or inspect, by giving an example. I mean in my articleship experience i want to know which part of audit was known as assessment of risk.
P.S. I am not from big 4 but have a good experience in audit
Risk Assessment simply means collecting information so that we can identify what can go wrong.
SA 315 explains tools of information collection, and which basic information should be collected about entity.
SA 402 also has risk assessment and there it means–> what information should be collected about outsourcing
SA 550 also has risk assessment and there it means–> what information should be collected about related party