Apprenticeships have transformed. Today they are career pathways for professionals, not just the vocational roles that many chief audit executives (CAE) may associate with. The UK Government’s 2020 apprenticeship vision and associated business levy makes this a subject area that CAEs need to be aware of regardless of their current resourcing strategy.

This article takes a two-fold approach. Firstly, giving insight into the role that internal audit can play in ensuring their organisations are maximising benefits from government’s apprenticeship scheme. And, secondly, by looking at how internal audit can provide assurance with the levy requirements.

Why the noise about apprentices?

Over two million apprentices have started studies since 2015. And the government remains committed to the scheme despite falling short of it's initial goal of three million by 2020. To encourage employers to commit to training, some of the costs are recoverable with the scheme funded by a levy which all organisations with an annual payroll cost over £3m are required to pay.

The Chartered IIA seized the opportunity to provide CAEs with a new option for developing talent and promoting the profession, launching two apprenticeships in 2018.

Internal Audit Practitioner

• GCE A levels entry requirement
• 18-24 months
• IIA Certificate in Internal Audit and Business Risk
• Certified Internal Auditor (CIA) Part 1 – Essentials of Internal Auditing

Internal Audit Professional

• Employer set entry requirements, minimum GCE A level or L3 apprenticeship
• 36-48 months
• Certified Internal Auditor (CIA) Certification
• Qualification in Internal Audit Leadership (QIAL): specifically the case studies elements

Here is a quick summary of the scheme:

• Organisations with an annual payroll over £3m pay a levy of 0.5% from May 2017
• Levy paid monthly to HMRC via the PAYE process
• Contribution offset by £15k allowance
• Payments are accessible as funding via the Digital Apprenticeship Service for 24 months…