ACC 645 Module Three Activity Guidelines and Rubric

Overview

You are a senior auditor at an accounting firm, ABC Financial Services. As part of your role, you have been assigned to lead a team of junior accountants in preparing SSARS engagements for several clients.

One of your junior team members, Sarah, was responsible for preparing a review engagement for a small manufacturing company. Upon examination of Sarah's work, you notice a few discrepancies and realize that crucial information seems to be missing: she mistakenly prepared a compilation engagement instead of a review engagement.

This assignment will help you explain the limitations of each SSARS engagement.

Resources:

1.) https://www.journalofaccountancy.com/issues/2018/aug/aicpa-compilation-and-review-report-requirements-201818993.html

2.) https://www.aicpa-cima.com/professional-insights/video/what-is-the-difference-among-a-compilation-review-and-audit

Directions

Use the knowledge you gained from this module's resources to write an email for your colleague

Sarah highlighting the key differences between preparation, compilation, and review engagements. (provide detailed explanation for each)

Specifically, you must address the following rubric criteria:

1. Describe the elements of a compilation engagement that should not be included in a review engagement.
2. Compare the limitations of the level of service for each SSARS engagement type.
3. Recommend the appropriate level of service that should be provided while conducting a proper SSARS review engagement.