The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency have issued an Interagency Advisory in support of the principles and expectations set forth in the Basel Committee on Banking Supervision's March 2014 guidance on external audits of banks. This guidance was updated in an effort to enhance the quality and usefulness of audits. The Basel Committee's guidance addresses how a bank's audit committee should relate to the bank's external auditors, how auditors should perform audits, and how auditors should interact with the bank's supervisor.
The Interagency Advisory also explains the agencies' supervisory expectations regarding how internationally active U.S. financial institutions should address differences between the standards and practices followed in the United States and the principles and expectations in the BCBS external audit guidance. The Advisory acknowledges that the existing standards and practices in the United States are "broadly consistent" with the BCBS external audit guidance, but it notes that where there are differences between the BCBS external audit guidance and U.S. standards, examiners should encourage institutions' audit committees to follow the practices identified in the advisory.