"Jim Macklin" writes:
You can only log PIC when another pilot [licensed or not] is
flying if you are a CFI.
James H. Macklin
ATP,CFI,A&P

The relevent FARs do not make reference to "flying" nor
to "unlicensed" "pilots". They refer to people posessing
various certificates and to people who are manipulating
controls or not. They make no reference to passengers
who happen to be manipulating the controls.

His dog can legally "fly" the plane.