The Internal Auditor: Protagonist of Innovation and Guardian of Integrity

Much more than an “error finder” — a strategic agent of organizational transformation

I’ve been reflecting on and working on this topic for many years. I’ve always argued that the role of the internal auditor has undergone significant evolution — and I can say this with confidence, having followed this journey closely for over 45 years.

In the past, internal audit was widely perceived as a function focused on identifying failures, errors, and non-conformities. It was essentially a reactive and corrective activity. However, times have changed, and changed rapidly. Today, much more is expected from this professional. The modern internal auditor is, above all, a protagonist of innovation, a catalyst for operational efficiency, and a strategic operator in strengthening governance and organizational integrity.

Reducing this role to the old stereotype of an “error finder” is to completely overlook the transformative potential of internal auditing. An auditor confined to punitive oversight and limited to basic compliance reviews misses countless opportunities to add real value to the organization. Their role must be understood as a driver of progress, not a signal of fear or stagnation.

Recently, during an event on statutory audit committees, I was asked: “Has internal audit fulfilled its role?” Unfortunately, my answer was: “No, not essentially.” And I explained. Based on my observations and experience, I see that internal auditing still focuses mostly on compliance evaluations. Little, or almost nothing, has been done in terms of critical analysis aimed at improving operational efficiency. And that is a clear deviation from its true purpose.

According to the Global Internal Audit Standards, the mission of the internal audit activity is:

“To enhance the organization’s capacity to create, protect, and sustain value by providing the board and management with independent, objective assurance, advice, insights, and foresight based on risks and organizational objectives.”

Internal auditors aligned with this mission become true facilitators of innovation. With an integrated and in-depth understanding of organizational processes, they are capable of identifying opportunities, proposing disruptive solutions, and anticipating emerging risks. They move from being critical observers to becoming strategic partners in the digital and cultural transformation of organizations.

Their analytical and systemic perspective allows them to identify bottlenecks, waste, hidden risks, and areas for improvement. By offering viable and well-founded recommendations, the auditor directly contributes to increased productivity, better resource optimization, and enhanced value delivery to both internal and external clients. Their presence is central to building more agile, resilient, and competitive organizations.

Moreover, in the context of growing demands for transparency and accountability, the internal auditor plays a crucial role in strengthening governance. They act as a bridge between senior leadership, operational managers, and stakeholders, promoting alignment between strategy, internal controls, and organizational values. Their role is essential in embedding policies, regulations, and values into the organizational culture, preventing misconduct and fostering a collective commitment to integrity.

However, in order to fully assume this protagonism, mastering technical procedures is no longer enough. Auditors must develop a new range of competencies, the so-called “Power Skills”, including assertive communication, critical thinking, the ability to solve complex problems, emotional intelligence, leadership, and the ability to influence and inspire.

Beyond that, auditors need strategic vision, data-driven analytical capability, adaptability to change, and the courage to take independent stands, even in challenging environments. Many of these skills are not developed in formal education or work systems, but rather through personal life experiences — what we often call “Mad Skills.”

In my own case, for example, the 20 years I dedicated to horseback riding were a true parallel school. Through it, I learned — in practice — the value of non-verbal communication, emotional balance, teamwork, active listening, and mutual trust. These are fundamental skills that I would never have acquired solely in corporate settings or academic courses.

To conclude:

The 21st-century internal auditor must, above all, be an agent of transformation. Their role goes far beyond pointing out flaws. They must inspire change, promote best practices, contribute to intelligent decision-making, and help build organizational resilience.

Recognizing and encouraging this protagonism is essential for organizations to thrive in an increasingly dynamic, complex, and demanding environment.

Be happy — and never settle for low impact. The role of the internal auditor is significant. It is strategic. It is transformative