Risk assessment is at the core of every audit, and the recently issued SAS 145 introduces new and enhanced requirements related to identifying and assessing the risks of material misstatement. Gain a deeper understanding of the requirements of SAS 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. Recognize how auditors can adapt SAS 145 and the risk assessment professional literature to typical smaller-firm engagements. Identify common challenges auditors encounter concerning risk assessment.