My DS is older (5 y/o), but we use AAR as a supplement to school reading program (I'm not exactly happy with the way reading is taught in his school). It's a phonics-based program, interactive with little "games", and very complete. You can go through the contents page of AAR level 1 to see (and skip) what she already knows, and then start progressing with new ideas she isn't quite firm on. I like it because of the solid phonics and it's progressive build on concepts. It also has a lot of fluency practice each lesson which is important for us. Sight words are introduced a little later on in level 1 IIRC. AAS should be begun after finishing level 1 of AAR (per their recommendation).
Keep in mind level 1 is meant for K age/ability. If she is advanced you may be skipping ahead or just practicing briefly with a lot of the lessons. There are other levels though so if you like the program you can always advance. For my low-attention DS5, we cannot cover all the fluency/practice words for one lesson in a day as he gets burned out quickly at the moment. But you can also break those up throughout the day (5 min in am and 5 min in pm, for example).
