Budd,the Purchasing Agent for Lake Hardware Wholesalers,has a Relative Who

question 6

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.

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