You are happy to be working as a controller in the headquarter for a company, and the owner and President of the company (the “boss”) trusts you enough to handle the business’s banking account, since you did, after all, get an “A” in your Foothill Accounting Ethics course. One day the boss hands you a $225.00 receipt for dinner and entertainment from the night before. He explains it is for the entertainment of a client – dinner and the lounge at the boss’s country club – and wants you to cut him a check for reimbursement of the full amount of the receipt. Later that day, the boss’s girlfriend stops by to pick up the boss for lunch. While waiting she talks to the receptionist and you clearly overhear the girlfriend say how much she enjoyed last night’s dinner at the country club with the boss.

What would you do, if any? Explain your thought process.