Financial Institutions Regularly Identify Uncollectible and Charge Them Off Against

Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for charge-offs and select a sample of charged-off loans whether they are handled properly. Another useful test is:

A) To select a sample of loans that are significantly paid inorder to determine whether they meet the charge-off criteria and assess why they have not been charged off
B) To select a sample of loans that are significantly paid in order to determine whether they meet the past criteria and assess why they have not been charged off
C) To select a sample of loans that are significantly paid in order to determine whether they meet the charge-off criteria and assess why they have not been charged off
D) To select a sample of loans that are significantly paid in order to determine whether they meet the charge-off criteria to meet the current requirements