Peter Budd, the Purchasing Officer of Lake Hardware Wholesalers Pty

Multiple Choice

Peter Budd, the purchasing officer of Lake Hardware Wholesalers Pty Ltd (Lake) , has a relative who owns a retail hardware store. Peter Budd arranged for hardware to be delivered by manufacturers to the retail store on a COD 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 for:

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