Hi Erika:
This event is not an unfamiliar one, and unfortunately the instructor is burdened with the responsibility of working with all students enrolled whether they are prepared or not. Not real fair to student or teacher.
Using enrollment admission tests, giving an intial pretest, or establishing prerequisite courses are the most common methods to try to match students abilities with their course choices.
In vocational schools, often none of these exist, so I have adopted an approach that assumes I will every student is some way to some degree. Som e students may not make it or pass the class, but it won't be because I didn't work with them to make that happen.
Regards, Barry