 In this presentation we will discuss the risk assessment process. So what is the risk assessment process? Why is the risk assessment process used? Risk assessment procedures are performed to attain an understanding of the entity and its environment. So we're going to use this process to understand the entity and the environment which it is in. Auditors use this understanding to help identify business risk. So of course once we have this understanding we're going to assess the business risk and understand potential misstatements that can result. Thinking about the response of the entity to business risk helps the auditor to assess the risk of material misstatement at the financial statement level. So we got the business risk and we want to think about how the entity responds to that business risk that of course is going to help us to assess the material misstatement at the financial statement and assertion levels. So risk assessment process perform at risk assessment process.