Peter Perturbed is an exemplary worker and has an excellent career ahead of him at a major international accounting firm. Edith Evasive has been Peters mentor and supportive confidant since he started at the firm as her summer intern, six years ago. Edith also writes Peters quarterly performance evaluations.

During Peters audit review, he has uncovered a serious error in some audit procedures performed by Edith. As Peter examines Ediths work, he realizes that the error is material and most likely the result of carelessness. This error will result in a significant amount of lost time and additional audit procedures that cannot be billed to the client.

Ediths skills are highly regarded; she has a reputation for being thorough - never careless. She has recently been assigned added responsibilities and is on the fast track to partner. This additional workload has likely resulted in her careless error.

Peter brings the error to Ediths attention at a private meeting in his office. Edith tells Peter that, to protect herself, she plans to blame Peter for her mistake and promises Peter that she will protect him from any fall out that might affect his career.

Just before she walks out of his office, Edith also warns Peter that if she accepts responsibility for the error, she will not be promoted to partner and will no longer be an asset to his career advancement.

Peter sits at his desk unsure of his next move.

What should Peter do?