As a young internal auditor, I often felt like a student carefully observing and learning from those in the department who were senior to me. I came to recognize that certain senior members of the internal audit team interacted very differently with internal audit clients (auditees, as we called them then).

Some exhibited extraordinary patience, even in the most contentious meetings. Others would readily “throw down” in a confrontation and debate aggressively with disagreeable clients. I realized that colleagues who were patient and understanding throughout the audit process were the ones with whom I preferred to work. I wasn’t sure exactly how to describe it, but they made me prouder to be a part of the team.

Years later, as a chief audit executive (CAE), I learned how much energy it took to manage those whose people skills were lacking. I came to appreciate that the internal auditors whose work I had admired and tried to emulate were imbued with a higher level of emotional intelligence.

Emotional intelligence (EI), often referred to as emotional quotient (EQ), is the ability to understand, use and manage one’s own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges and defuse conflict. Those were precisely the abilities I admired in the more even-keeled senior internal auditors.

In a profession deeply entrenched in logic, standards and objectivity, the significance of emotional intelligence may not always be apparent. However, as I came to appreciate, internal audit is not merely about identifying deficiencies, writing findings and forging recommendations. It also involves effectively interacting with clients, understanding nuanced situations and delivering findings in a manner that facilitates improvement and change.

Emotional intelligence comprises traits that enable a person to not only recognize, understand and manage their own emotions, but also the emotions of others. These are essential for building strong relationships, making informed decisions and navigating social complexities.

As psychologist Daniel Goleman and others observe, there are at least five key traits often associated with a higher degree of emotional intelligence:

1. Self-awareness. This is the ability to recognize and understand your own emotions, strengths, weaknesses, values and drives. Those who are self-aware are better equipped to gauge how their feelings affect themselves, others and their performance at work or in other activities. They can recognize their emotional triggers and understand the impact of their emotions and actions on the environment around them.

2. Self-regulation. This refers to the ability to control or redirect disruptive impulses and moods, and the propensity to think before acting. It involves managing your emotions in healthy ways, adapting to changing circumstances and following through on commitments. Individuals high in self-regulation are not overly reactive to emotional or stressful situations. Instead, they manage their emotional responses and remain calm and clear-headed under pressure.

3. Motivation. Individuals with high emotional intelligence are driven by things beyond external rewards like fame, money or recognition. They are resilient, passionate about what they do, and possess an inner drive that encourages them to achieve their goals for the sake of personal fulfillment. This trait is characterized by a strong will to improve, a commitment to goals, an ability to initiate or adapt to change and a persistence to overcome obstacles.

4. Empathy. An ability to understand and share the feelings of others goes beyond simply sympathizing with them. It involves understanding their emotions, needs and viewpoints. Empathetic individuals are adept at recognizing and responding to what other people are feeling. They can navigate social networks, understand social dynamics, and respond appropriately to social cues. Empathy is crucial in managing relationships, listening and relating to others.

5. Social Skills. In the context of emotional intelligence, this refers to the skills needed to handle and influence other people’s emotions effectively, such as effective communication, leadership, conflict management, negotiation, persuasion and building bonds. People with strong social skills are typically team players. They can manage disputes, are excellent communicators and are masters at building and maintaining relationships.

Understanding the common traits of high emotional intelligence is fine, but how do such traits specifically benefit internal auditors? As the JASANZ Academy and others observe, there are at least six ways:

Enhances Communications. One of the most cited components of emotional intelligence is the ability to communicate effectively. As internal auditors, we must articulate audit findings, explain complex issues in understandable terms and provide recommendations that clients can implement. A high EQ allows internal auditors to adjust their communication style to match their audience, ensuring their message is not only heard but understood and respected. This is crucial in encouraging clients to embrace internal audit findings and recommendations.

Facilitates Stakeholder Engagement. Internal auditors interact with a wide range of stakeholders, including front-line employees, executive management and board members. Each group has different interests, concerns and levels of understanding of the internal audit process. Emotional intelligence helps internal auditors empathize with these individuals by seeing things from their perspective and anticipating their reactions. An ability to engage with and understand the needs and fears of various stakeholders builds trust and fosters a collaborative environment where our insights are more likely to be valued and acted upon.

Aids in Conflict Resolution. Internal audits can sometimes lead to defensive reactions or conflicts, especially when findings are perceived as critical or even threatening. An internal auditor with high emotional intelligence can navigate such situations more effectively. They recognize the emotional undercurrents of a discussion and address them in ways that de-escalate tension. By managing their own emotions and responding to others’ emotions constructively, auditors can turn potentially contentious situations into opportunities for growth and improvement.

Fosters Ethical Decision-Making. I speak often about the ethical dilemmas internal auditors frequently face, and the need to make decisions that uphold integrity and objectivity. Emotional intelligence contributes to ethical decision-making by enabling internal auditors to be more self-aware and self-regulated. It makes them better equipped to identify when their emotions or biases might influence their judgment and then take steps to ensure their decisions remain impartial and in line with The Global Internal Audit Standards.

Enhances Leadership. As we advance in our careers, leadership becomes increasingly important. Emotional intelligence is a critical component of effective leadership in any profession, including internal audit. It allows leaders to be more aware of their team’s feelings and motivations, to lead by example in terms of ethical behavior and professionalism, and to inspire and motivate. An emotionally intelligent internal audit leader can foster a positive culture within the department – one that values learning, continuous improvement and ethical conduct.

Improves Change Management. As internal auditors, we often recommend changes to processes, policies and controls. Implementing these changes can be challenging, as it can require altering established behaviors and practices. Internal auditors with high emotional intelligence are better equipped to manage these changes. They can anticipate resistance, understand the fears and concerns driving that resistance, and communicate the need for change in a way that motivates stakeholders to adapt.

The importance of emotional intelligence for internal auditors cannot be overstated, nor is it something that doesn’t require constant attention and work, especially in these complex and often chaotic times. While technical skills and knowledge are fundamental, the ability to manage and understand emotions significantly enhances our effectiveness. Emotional intelligence enriches communication, stakeholder engagement, conflict resolution, ethical decision-making, leadership and change management.

From my experience, the smartest internal auditor in the room isn’t always the best. While a high IQ may help identify a problem, a high EQ is essential to persuading others to fix it.

I welcome your thoughts via LinkedIn or X.