A setup for active fault diagnosis (AFD) of parametric faults in dynamic systems is formulated in this note. It is shown that it is possible to use the same setup for both open loop systems, closed-loop systems based on a nominal feedback controller as well as for closed-loop systems based on a reconfigured feedback controller. This will make the proposed AFD approach very useful in connection with fault tolerant control (FTC). The setup will make it possible to let the fault diagnosis part of the fault tolerant controller remain unchanged after a change in the feedback controller. The setup for AFD is based on the Youla-Jabr-Bongiorno-Kucera (YJBK) parameterization of all stabilizing feedback controllers and the dual YJBK parameterization. It is shown that the AFD is based directly on the dual YJBK transfer function matrix. This matrix will be named the fault signature matrix when it is used in connection with AFD.