During the course of an audit, the auditor is required to assess the risks associated with the company's operations and identify critical and high-risk areas to ensure effective audit planning. Explain how an auditor can

Risk assessment of the Auditee with respect to and connected/relevant to the Audit Engagement shall be done considering industrial & business environment, organisational structure and compliance requirements. The industrial & business environment includes the regulatory changes & judicial orders, compliance and disclosure requirements, etc. The Auditor shall endeavor to make assessment of risk and shall identify critical and high-risk areas; the risk assessment by Auditor can be made: by considering the underlying risk assessed by Management or internal and/or specific expert/ agencies and analysis thereof; by reviewing policies and procedures put in place to mitigate risk; by having insight into the objectives, key performance indicators, risks and control measures and holding meetings with key executives of the Auditee.