An external audit program encompasses engaging an independent auditor to perform a full-scope financial statement audit, a balance-sheet-only audit, an attestation of internal controls over financial reporting, or other agreed-upon external audit procedures. Outsourced or co-sourced internal audit activities are not considered part of an external audit program.
An effective external audit function often provides the board of directors and management with:

• Reasonable assurance about the effectiveness of internal controls over financial reporting, the accuracy and timeliness in recording transactions, and the accuracy and completeness of financial and regulatory reports.

• An independent and objective view of a bank’s activities, including processes relative to financial reporting.

• Information useful to directors and management in maintaining a bank’s risk management processes.