April, like the above mentioned, audits have several purposes.
One would be that the policies and procedures meet regulatory (state and federal) mandates.
Once that is accomplished, the purpose of an audit is to ensure that the policies and procedures are being adhered to. What another bank does is irrelevant to what you might be auditing for. The state (or federal) regulations might be different, or the bank's appetite for risk might be. The audit might be trying to piggyback on external or loan review, maybe not.
The head auditor or audit committee should also be providing some guidance on what they want you to do.
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Integrity. With it, nothing else matters. Without it, nothing else matters.