A) Unfavorable industry conditions. Which of the following is not such a condition or circumstance? A) Unfavorable industry conditions. B) Lack of working capital. C) Low debt. D) Slow customer collections. 9. The auditor looked at a bank statement received and held by the client. This would be considered what kind of audit procedure? A) Recalculation. B) Physical observation. C) Confirmation. D) Examination of documents.