True or False

1. When the auditors compare a sample of shipping documents to related sales invoices, they are trying to locate Items that have been billed but not shipped.

2. All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memoranda signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers ledgers.

3. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned.

4. When it is impossible to confirm accounts receivable, the auditors can never issue an unqualified opinion on the clients financial statements.

5. Inspection of notes receivable on hand should be performed concurrently with the count of cash and securities to prevent the concealment of a shortage by substitution of cash for misappropriated negotiable instruments, or vice versa.