Client One $($Review$)$

ABC Tree House Corporation comes to your firm and is trying to borrow money from the bank right

away. The bank is requesting a review of the firm$$s financial statements prior to the loan.

Client Two $($Direct Examination$)$

XYZ Insurance Corporation has come to your firm for help providing an assessment of controls over

claim and litigation based on established insurance policies

You are a junior auditor at an accounting firm. Your manager has given you a set of SSARS engagements with two different clients. Your manager has asked you to draft a detailed memo listing the provided$-$by$-$client $($PBC$)$ items that are necessary for direct examination and review SSARS engagements, along with the rationale for why the included items are necessary.

Using the scenario above, draft a memo addressed to your manager explaining the PBC items for each engagement.

Specifically, you must address the following rubric criteria:

Determine the PBC items required for a direct examination engagement.

Determine the PBC items required for a review engagement.

Justify why the required items are necessary for a direct examination engagement.

Justify why the required items are necessary for a review engagement.