Which of the following internal control activities would most likely justify reducing the assessment of the risks of material misstatement for long-term notes payable?

a. The use of prenumbered purchase orders to prevent unrecorded notes. 

b. All direct borrowings on notes payable are authorized by the board of directors. 

c. Any use of assets for collateral on long-term notes payable are analyzed for criticality to operations.

d. Proceeds from long-term notes payable are included in regular review of budgets to ensure adequacy of cash flow availability.