Caterpillar Tractors buy wheels from Wheels R Us in order to complete the manufacture of its tractors. The Mina brothers work for Caterpillar Tractors. Sam works in the purchasing department while Peter works in the accounting department. The business is starting out and has a system in place such that the purchasing department also receives the wheels when they are delivered to the business. Sam orders the wheels from his best friends business, Wheels R Us. The order for the wheels is processed through the accounting system by Sam and Peter pays Wheels R Us once notified by Sam that the wheels have been received.

Required

Identify and explain two internal control principles that you feel are lacking in this scenari