How linux arm64 switch between AArch32 and AArch64

linux supports running 32-bit application, as long as

1. kernel enables CONFIG_COMPAT
2. the hardware supports the AArch32

i assume that 32-bit application must run in arm AArch32 execution state and if the environment has 32-bit application and 64-bit application.

32-bit application process -> arm state is AArch32

64-bit application process and kernel -> arm state is AArch64

is it correct?

if so, how does the linux handle the AArch32 and AArch64 switch? does kernel know the running process is 32bit or 64bit?