If she is reading, I would let the teacher know that in a nice, friendly conversational way. They are no doubt in the midst of assessing all the kids one on one to see what level they are at, but that process usually takes a few weeks. And even then some kids don't assess well, or don't answer the questions in expected ways and can be assessed lower than they are actually at.
Some kids don't mind the review and think it's fun to just to do whatever the other kids are doing. But welcome to elementary school. The early grades can be very frustrating for kids who are already/almost reading and don't tolerate review well.
Beth, mom to older DD (8/01) and younger DD (10/06) and always missing Leah (4/22 - 5/1/05)