I agree with Luis in that you need to focus on certain skills in order to correctly assess a student's level. For example, someone might have fantastic grammar and vocabulary when it comes to reading, but can't put a sentence together in a conversation; or maybe a student dominates the conversation, always butting in, because his listening is quite poor. There are an infinite number of reasons to which you need to give at least some attention.
Luis's breakdown of the skills is good, too. I will add, though, that you can either tally the points at the end, as he has done, or you can break the numbering into levels. Scores of ones and twos would indicate a beginning level student; twos, threes, and fours an intermediate student, and fours and fives an advanced student. Even better, if you are working at a school with a level system in place, assign the scores to match the levels. Thus, a score of ones for grammar, listening, etc. would indicate a level one student, and a score of threes would indicate a level three student. For me, this always works best, as it is easiest to remember.
One point that no one has mentioned deals with the type of questions to ask. If you ask questions around familiar topics such as family, work, or hobbies, a student will score higher. He has talked about these topics in past textbooks, lessons, or even chatting with a native speaker, and so has produced this type of language again and again. Naturally, his fluency will be affected, as may his grammar and vocabulary.
When assessing a student's level, always begin with some of these questions to put him at ease, but then move towards less familiar topics. Ask questions that become increasingly more difficult, testing for different grammar points and vocabulary. If the student begins to struggle or becomes flustered, ask a few easier questions once more, then again slowly increase the difficulty. This should give you a pretty accurate idea of where to place him.
Chris Cotter
www.headsupenglish.com