CBE: Experience counts

There’s more than one way to become a chartered member of the institute. While most people join as junior auditors and work their way up by taking the exams, some join the profession in a senior role or reach a leadership position without taking the formal qualifications. These people may find that our the chartered by experience (CBE) route is a better alternative, because it enables them to demonstrate their knowledge of, and compliance with, all our Standards using their extensive experience in the role.

While we're keen to encourage all those who are managing and leading internal audit teams to become chartered internal auditors, the CBE route is by no means an “easy” option. Those applying need first to become an affiliate member of the institute and then must provide evidence of their relevant experience at a senior level in internal audit, including influence over strategy, and of their competence. They then have to provide a written application and undergo a “professional discussion” with two experienced Chartered IIA assessors. This includes giving a ten-minute presentation on a subject chosen by the assessor, as well as discussing their submission in detail.

Those who are assessed as meeting the required standards become full chartered members, able to use the CMIIA designation.

So why would an internal audit leader choose to do this – and how do they find the experience in practice?

Lyndsay Cooper, chief internal auditor at asset management firm Baillie Gifford & Co, went through the process last year. She had worked in internal audit for nearly seven years and was already qualified as a chartered accountant, but she only became aware of the CBE route into Chartered IIA membership a couple of years ago.

Why did you decide to apply for chartered status via the CBE route?

I became interested when I realised that experience was important to the Chartered IIA and that they could assess my competency based on this. The main driver was that a couple of qualified auditors left my team and I thought I should lead by example. I wanted to make the point that it is an important qualification not just for those planning to stay in internal audit, but also for any risk and control-related role. The breadth of areas over which internal auditors are required to provide assurance now goes far beyond the financial reporting that a chartered accountancy qualification supports, for example.

How did you find the application process?

I found the process itself useful. It was an opportunity to learn something new and gave me the chance to take a fresh look at the team, where we are now, how our methodology and our processes support our objectives and where we could improve these. Every head of audit wants to improve what they are doing and it is important to stand back and look at it from the outside.

The discussion part of the process felt more like a two-way conversation than an interview and it was fascinating to talk to two assessors about what I was doing. They had far more experience than I do in a variety of organisations, so it was a great learning opportunity.

What did you gain from it?

The discussion was wide-ranging and covered many themes – from developing audit teams and culture to technology-driven auditing and the provision of real-time assurance. These are all broad themes that everyone in internal audit is grappling with at the moment. That is why it is so important that the assessors are experienced and can talk about the whole picture. Learning about what other teams are considering in these areas is an important part of being a member of the Chartered IIA, especially during crises such as the COVID-19 pandemic. Such discussions can start the cogs turning that drive change in your own team or organisation.

For me, the wide and varied conversation we had was hugely valuable around, for example, the implications of the Brydon review and the relationship between internal and external audit. The role of technology was also an important issue for me (as it is for all internal audit leaders) – how can we feed this into our plans and ideas and how can we automate our own processes more in future? Internal audit can be a leader in some important technological advances.

How much work did the application involve?

The submission needs to be long enough to demonstrate that you have the skills and experience you would need to get the qualification in the conventional way – the process mustn’t be too easy. The presentation also needs careful thought and the assessors were thorough, but I was prepared to be challenged.

What have you gained from the experience?

It definitely had the effect I wanted. I recently hired a graduate who is keen to do the qualification and the team is about to go through its first external quality assessment (EQA), so the timing and alignment were good. Gaining my chartered status helps to show that the team’s journey continues in a positive direction and I was able to use some of my preparation for both purposes. My assessment helped me to have the right conversations with team members about methodology and the way we do things.

Through undertaking the qualification, I now feel a responsibility to support the institute, for example, by getting more  of my team qualified and attending Chartered IIA forums. It also made me think about sharing my experiences with other internal auditors across sectors and this fits the ethos and strategy of our organisation.

Do you have any advice for others thinking of doing CBE?

Just do it. It’s a really valuable experience. You will spend time analysing the IPPF and seeing how it applies to you and your team. There’s no single right or wrong answer for lots of the big issues and it’s important to think outside the box and to understand why people do things differently for different reasons.

I would tell people not to be wary of highlighting any concerns about conflict of interest they have in their own organisations on the application – it gives you a chance to ask a third party and to be challenged about it and to discuss all the alternatives. If you play it too safe, you won’t learn anything, so ask everything and be open about any potential issues or concerns. Challenge is a positive thing and should be viewed as an opportunity.

It’s an ongoing journey and I don’t feel that it stops now I’ve got the chartered designation. I am now part of the ongoing development of the profession.

This article was first published in January 2021.