AAF 01/20 Preparation Checklist

AAF 01/20 Checklist

Here’s a handy AAF 01/20 Checklist, that we’ve put together after hearing from various people in the assurance reporting community that they were interested in learning about the steps, at a high level, they need to take in completing their AAF 01/20 Report Type I or Type II.

We will give you a breakdown of some of the things organisations should be doing now, and some things to think about down, the line as you progress.

This AAF Reporting Checklist is geared towards service organisations that have never undergone an AAF 01/06, AAF 02/07 etc. in the past, but will be taking up the task this coming year.

A more detailed version, geared towards companies that have some experience being audited will be posted later.

AAF 01/20 checklist - Tasks being ticked off of a checklist.

AAF 01/20 Checklist – Step One: Do your research

You have already visited our knowledge hub or website, so you have begun the process of researching AAF 01/20 and the responsibilities that come with performing one.

We recommend that you continue to search for AAF 01/20 related information as well, as most of that knowledge is applicable. 

Find Registered Auditors who perform over 20 AAF Reports annually.

You will want to research a number of firms that could perform and sign off on your AAF Report, which, only Registered Auditor firms are permitted to do.

This process should be handled with the utmost care as you are putting a lot of trust into the company you choose, and they can make or break you.

Some things to consider:

  1. The size of your company – You may not be able to afford a large Audit firm.
  2. The clientele you are attracting – Some companies will not feel secure with the quality of your AAF 01/20 if it was performed by a firm that isn’t well known.
  3. Total AAF reports performed – You do not want to use a company who has never done such work in the past, unless they are comprised of former employees of another quality firm and have decided to take off on their own.
  4. The methodology employed – You will want to quiz the companies and gain comfort around their methods and ensure you are comfortable with their responses and agree based upon your research.

Based upon how you felt about each company, the people, their methodology, their previous experience, and of course, cost, you should narrow down your search to the top two companies.

Pricing for an AAF report can vary greatly depending upon the company performing the work, the size of your organisation, and audit scope.

On average, company’s should be expected to spend between £15,000-£50,000 for a Type II audit.

You should look for a fixed fee so there is no potential for them to raise fees as the project progresses.

AAF 01/20 Checklist – Step Three: Define the scope.

Once you have engaged a firm to perform the work on your AAF 01/20, make sure you define the scope of the audit early on in the process.

Not doing so could lead to excessive delays and potential cost overruns.

Define your control objectives and activities.

In conjunction with your CPA firm, define the controls, steps to be tested, and make sure that they have been reviewed by process owners, and any of the stakeholders at the CPA firm who may be reviewing and/or signing off on the report to ensure everyone is in agreeance.

If this isn’t completed prior to testing, you are asking for a world of trouble.

AAF 01/20 Checklist – Step Four: Perform a Readiness Assessment.

You can either choose to perform a Readiness Assessment on your own, based upon the test steps already defined, or, if you do not have the capacity or ability to do so internally, you can look towards either the firm performing your review or another firm who is skilled in preparing companies for audits.

These steps laid out here, as our AAF 01/20 Checklist, will set you on your way to getting your AAF 01/20 started up and going and should help to guide you through the toughest parts of the process.

Once you have completed all of the steps of our AAF 01/20 Checklist, you should be able to rely on the knowledge of your Registered Auditor to take you past the finish line.

If you have any further questions please contact us on info@assureuk.co.uk or 02071128300

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