Budd, the Purchasing Agent for Lake Hardware Wholesalers, Has a Relative

Multiple Choice

Budd, the purchasing agent for Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for hardware to be delivered by manufacturers to the retail store on a C.O.D. basis, thereby enabling his relative to buy at Lake's wholesale prices. Budd was probably able to accomplish this because of Lake's poor internal control over:

A) purchase requisitions.
B) cash receipts.
C) perpetual inventory records.
D) purchase orders.