Internal Audit Leadership – Key Traits That Set You Apart

Becoming a great leader is a journey of continuous learning and growth, a process of self-development. No one can teach you how to lead; you need to be willing and able to learn how to lead. Mostly we learn from our experiences and facing adversity. Stepping outside of the spaces where we feel comfortable, is a powerful teacher. We, as internal audit leaders have a critical role to play in safeguarding organizational integrity, improving processes, and driving strategic value. I strongly believe that effective leadership in Internal Audit goes beyond technical expertise, it requires vision, adaptability, resilience, and the ability to influence stakeholders at all levels.

 Here are the key important qualities for successful leadership in internal audit, their importance, and actionable tips for audit leaders to master these skills.

1. Curiosity – The Key to Strategic Value in Auditing

For Internal Audit, it is about looking around the corner, exploring uncharted territories, and trying to understand the art of the possible. Curiosity drives critical thinking in Internal Audit, and leaders who embrace a “why” and “what’s next” mindset uncover emerging risks, explore non-traditional audit areas, and identify opportunities for adding strategic value. Curiosity transforms Internal Audit from a function focused solely on compliance to a dynamic, value-driven partner that anticipates change and challenges the status quo. 

How to Master It

Challenge assumptions during audits – “Why does this process exist? Is it still effective? What risks are we missing?” and don’t be afraid to ask basic or so-called naive questions. I have seen internal auditors, earning the seat at the table, because they ask insightful questions, challenging the status quo. Another way to be on top of your curiosity game is to stay updated on industry trends like ESG (Environmental, Social, Governance), cybersecurity, and AI. Understand how they impact your organization’s risk profile. Learning from other departments, clients, and peers outside Internal Audit is key. I encourage all internal auditors to invest time with the process owners and with the people on the front lines. Another way to broaden your perspective is by collaborating on cross-functional projects. As a leader, you must create a culture where your team members are encouraged to think beyond checklists, identify new risks, and explore creative solutions.

2. Analytical Thinking – Connecting the Dots

Strong analytical skills enable audit leaders to connect the dots, interpret data effectively, and provide actionable recommendations. Today’s audit leaders must balance quantitative insights with professional judgment to solve complex problems. While being data-savvy is paramount for internal audit leaders, it is not always about being data-driven, it is about being data-informed. Inaccurate analysis or weak root-cause identification erodes confidence in Internal Audit. Audit leaders with strong analytical abilities uncover meaningful insights that could help key stakeholders make informed decisions.

How to Master It

When reviewing data, ask: “What is this data telling us? What’s missing? What are the potential implications of these findings?” Other key part is to present audit findings in a way that resonates with stakeholders. Combine data visuals with concise explanations to highlight risks and opportunities. In other words, learn to tell stories with data. It goes without saying that investing time & resources in data analytics is totally worth it. Mastering tools (like Power BI, Tableau, and Python) to enhance audit precision; training your team to use these tools to uncover anomalies and trends; and understanding how data sources are collected and processed is a given for modern day auding. And remember, your role as Internal Audit leader is to decode the stories hidden within the data and figure out what the data are telling you.

3. Adaptability and Agility – Pivoting with Purpose

The world is changing faster than it used to, in part because of emerging technology and artificial intelligence. As a result, stakeholder expectations are evolving faster and you, as Internal Audit leader, need to be able to adjust to these ever-shifting demands. Adaptability is crucial in today’s dynamic environment. Regulatory changes, emerging technologies, and evolving risks require Internal Audit leaders to pivot quickly and embrace agility in their strategies. Static audit plans and rigid processes fail to address fast-changing risks. Adaptable leaders position Internal Audit as an agile partner capable of navigating uncertainty effectively.

How to Master It

Push yourself to work in new environments. Take on audits in unfamiliar areas like AI governance, ESG compliance, or digital transformation projects. Stretching yourself in these ways will expand your personal growth and development as well. Further, this builds resilience and expands your adaptability. Adopting flexible audit methodologies that allow teams to pivot quickly as risks evolve, keeps your work relevant and stakeholders interested. Iterative planning to align with real-time changes is another way to be agile and stay relevant.

4. Empathy and Relationship Currency – Winning Together

Successful internal audit leaders recognize the fluid nature of situations and strive to understand the cultural context within which they operate. Understanding and connecting with others on an emotional level is a key trait of strong Internal Audit leaders. You need to be able to step into the shoes of the audit clients, understand what matters to them, what their priorities are, and identify mutual wins. Developing your emotional intelligence gives you a deeper appreciation of the complex challenges others are working through. Further, empathy strengthens relationships with stakeholders, helping audit leaders understand their concerns, priorities, and perspectives. Empathetic leaders bridge the gap between “assurance” and “advice,” positioning Internal Audit as a collaborative, value-driven function.

How to Master It

Engage stakeholders early – build relationships through pre-audit discussions. Understand their pressures and challenges before beginning work. Adapt how findings are presented to ensure recommendations are well-received. Show awareness of team dynamics and leadership priorities. Further, it is important to be intentional with empathy. Practice empathy internally, listen to team members’ challenges and invest in their development.

5. Creativity – From Compliance to Innovation

Keeping Internal Audit context in mind, any idea that is new and useful to the organization is creativity; and some of those ideas could just be incremental in nature. Creativity allows Internal Audit leaders to reimagine their role, processes, and outputs. Whether it is innovative reporting formats or introducing AI-driven audits, creativity transforms how Internal Audit delivers value. Stakeholders expect Internal Audit to provide more than compliance assurance. Creative leaders identify innovative solutions to unpack complex challenges and enhance audit relevance.

How to Master It

Your role as Internal Audit leader isn’t necessarily to come up with all the great ideas on your own, but rather to establish an environment that promotes diverse perspectives. When different viewpoints rub up against each other is when creativity flourishes. Bring in team members with different backgrounds (e.g., from technology, finance, and operations) to spark new perspectives; and don’t be afraid of experimenting with tools and continuous auditing platforms.

6. Comfort with Ambiguity – Navigating the Fog

Dealing with ambiguity is about holding conflicting ideas in your head and dealing with competing priorities that feel equally important. Ambiguity is inherent in Internal Audit, where incomplete data and conflicting priorities are common. Internal Audit leaders must navigate this “fog” with confidence, clarity, and structured problem-solving. I have seen many Internal Audit leaders fall into the trap of linear thinking, believing that X causes Y, and as a result, they may overlook the interplay of different dynamics; and hence they miss the holistic strategic view of the organization. The ability to thrive in uncertainty positions Internal Audit as a strategic partner, helping the organization interpret unclear risks and opportunities.

How to Master It

The stronger your sense of certainty, the clearer the indication that a fresh approach is needed. Use “what-if” models to anticipate various outcomes and prepare for alternative plans. Establish a strong audit foundation based on risk priorities, even when specific outcomes are unclear. Another powerful way to deal with ambiguity is to frame it as an opportunity, asking yourself questions like what can we learn here? What patterns or gaps do we see? and stay calm under pressure. It does take some practice and intentionality, but it helps to think rationally, when things are not clear.

7. Authenticity – Building Trust, Credibility, and Influence 

Authentic leadership in Internal Audit builds trust and credibility with stakeholders. Being genuine, transparent, and consistent ensures that audit findings and recommendations are respected, while relationships with management remain collaborative. Trust plays a key role in the success of any internal audit function, and we risk being seen as compliance enforcers instead of trusted advisors. I have seen successful internal audit leaders inspiring their teams, gaining stakeholder buy-in, and influencing meaningful change.

How to Master It

Ask team members, peers, and stakeholders for feedback. Start by asking for feedback from peers in low-pressure situations and work your way up to higher-stakes scenarios. Frame it positively (What can I start doing, stop doing, or improve), listen (really listen) and assess the feedback with an open mind. Further, don’t dwell on the negative and the things you need to fix. Instead, home in on the positive to start with. Create an environment where people feel heard and valued. This strengthens trust and ensures your authenticity resonates with others.