B. Your friend, Peppy, started his own pizza store 10 years ago based on exotic pizza flavors found nowhere else. Wasabi Bacon is their all-time best seller. Business is great, but recently Peppy discovered that Annie, his former right-hand person, was stealing money from him. She did this in a number of ways including creating false invoices and paying them to a bank account she controlled, purposely ordering extra supplies and ingredients without Peppy's knowledge and then selling them to Peppy's chief competitors, Mario and Luigi, while pocketing the money, and taking cash out of the register at night when she was reconciling the day's sales with the cash received. Peppy feels foolish for allowing this to happen and wants to make sure it doesn't happen again. He has hired you to design an internal control system that will ensure he can never be defrauded. He is particularly concerned about the following: 1. The point of sale, and particularly cash sales; 2. Ordering and payment for supplies and ingredients; 3. Mario & Luigi trying to break in and steal his Wasabi Bacon recipe; and 4. His pizzamakers making extra pizzas during the day and, in cahoots with his delivery drivers, selling them for their own profit. Instructions: Explain to Peppy any vulnerabilities you see in the areas of concern Peppy has shared with you, and design internal controls that address those areas of concern. Is Peppy's expectation that the internal controls you design will guarantee he will not be defrauded? Explain to him why or why not.