Learnings from completing an AAF 05/20 assurance report

This blog will give more information about the new AAF 05/20 assurance report.

The TECH AAF 02/07 was amended to the new TECH AAF 05/20 assurance report in April 2020 to incorporate the key areas which Master Trusts were being asked to demonstrate as part of the Pension Regulators (tPR) Authorisation process and the ongoing Supervisory Return.

Your AAF 05/20 assurance report does not have to be completed in line with tPR’s Supervisory Return as the assurance report should be submitted as it is signed off. However, to help with resourcing and evidence collation it is of benefit to sign off the AAF 05/20 report before the tPR’s Supervisory Return as you will be able to submit this as evidence and use the documentation already collated to complete the AAF 05/20.

 

Learnings from completing an AAF 05/20 assurance report: Person holding a magnifying glass, looking at an accounting system of clients and data.

Key Learnings from the new AAF 05/20 assurance report

Here are some of our key learnings from completing the new AAF 05/20:

  • Discuss the new AAF 05/20 assurance report requirements early to ensure all objectives are covered before the reporting date
  • Confirm control activities before testing begins
  • Discuss what sufficient appropriate evidence is required to demonstrate the control has operated effectively during the period
  • Where possible collate evidence throughout the period as to spread out the resources required to complete the AAF 05/20 assurance report
  • Regular communication, raise any queries as they arise and evaluate the project progress throughout

When completing the transition from the AAF 02/07 to the AAF 05/20 in April 2020, we found it beneficial to maintain and complete a mapping document. This allows you to identify where gaps are apparent with the introduction of additional control objectives. This will ensure as little time and resources are used up, by having the control activities written within a timely manner will allow more time to be spent on collating evidence and allowing us as the service auditors to complete the testing.

As service auditors we strive to add value to the AAF 05/20 process by providing business insight, improvement findings and sharing knowledge from working with others in the pension industry.

If you would like to find out more about Master Trust Assurance reports AAF 05/20, please contact us on info@assureuk.co.uk or call us 020 7112 8300.

About Assure UK

Assure UK is a leading specialist pension audit and assurance reports accountancy, supporting a broad range of pension trustees, administrators, and managers across the UK.

For more information about our services or advice on how to improve your pension audits and assurance reporting, please connect with us on social media, sign up for our newsletter, and regularly visit our website.

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