AAF 01/02: What You Need to Know?


In this blog post, we’ll explore the AAF 01/20, otherwise known as the Audit and Assurance Faculty. We’ll discuss what the AAF is, what it does, and why it’s important. We’ll also provide some essential tips for those who are interested in pursuing a career in auditing and assurance.

What Is AAF 01/20?

The purpose of the AAF 01/20 (Audit and Assurance Faculty) is to provide guidance on the auditor’s consideration of internal control in an audit of financial statements. The AAF 01/20 applies to all audits of financial statements performed in accordance with generally accepted auditing standards (GAAS).

What Does AAF 01/20 Mean for Businesses?

The AAF 01/20 standard provides generic guidance to Service Auditors who are reporting on specific services performed by a Service Organization (the ‘Subject Matter’). Additionally, it is intended to provide high-level guidance to Senior Management of the Service Organization who are responsible for preparing the report on the Subject Matter. Furthermore, the AAF 01/20 standard is expected to help User Organizations to understand the scope and type of assurance provided in the Service Auditor’s Report.

How Can Businesses Prepare?

As Reporting Accountants, our engagement will be in full compliance with International Standard on Assurance Engagement (ISAE) 3000 and the ICAEW Technical Release AAF 01/06. Our work will focus on ensuring that the control procedures in place are designed appropriately and, if followed satisfactorily, will provide reasonable assurance that the control objectives will be met. Our tasks will include:

gaining an understanding of the control procedures: –

  1. Understanding the control procedures;
  2. Evaluating the assertions of the Directors;
  3. Testing the operating effectiveness of specific control procedures;
  4. Obtaining evidence on the effectiveness of control procedures in meeting related control objectives.


AAF 01/20 has updated its terminology to align with ISAE3402 and SOC1, changing terms such as “control procedures” to “control activities” and “reporting accountant” to “service auditor”.

  • Include or explain any omitted or modified control objectives
  • Supporting evidence required for the Management Statement (the new Management Attestation)
  • Expanded requirements for information in the “Front Half”
  • Inability to change the scope of the report after the Service Auditor has commenced work
  • Updated to reflect changes in technology since 2006
  • Included Sub-service organisations require a Management Statement.


The AAF 01/20, otherwise known as the Audit and Assurance Faculty, is a professional body for those working in auditing and assurance. The AAF provides guidance and support for its members, and it helps to promote best practices within the industry. The AAF is important because it helps to ensure that auditors and assurance professionals are able to meet the highest standards of competency and ethics.