True or False

1. An aged trial balance of accounts receivable may provide evidence on the adequacy of the allowance for uncollectible accounts.

2. Confirmation of accounts receivable by direct communication with the debtor tests the existence of accounts receivable.

3. CPAs use positive accounts receivable confirmation requests more frequently than negative accounts receivable confirmation requests.

4. When it is impossible to confirm accounts receivable, the auditors may be able to satisfy themselves as to the existence of accounts receivable by alternative procedures.

5. The auditors assessments of risks of material misstatement (inherent and control risks) are used to design further audit procedures, including tests of controls and substantive procedures