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In the course of an audit, you discovered that the CEO of th

In the course of an audit, you discovered that the CEO of the company you are auditing is having a consensual affair with a female executive at the same company, who does not work for him. Do you feel obligated to inform the Board of Directors?

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In the course of an audit, you discovered that the CEO of the company you are auditing is having a consensual affair with a female executive at the same company, who does not work for him. Do you feel obligated to inform the Board of Directors?

Solution:

Although the female can't actually not work for the CEO directly, due to the fact that all persons who work for a company are under the direction and control of the CEO, the board of directors should still be informed. By the way this question is worded, I am assuming your professor means the woman works ...

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In the course of an audit, you discovered that the CEO of the company you are auditing is having a consensual affair with a female executive at the same company, who does not work for him. Do you feel obligated to inform the Board of Directors?

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