Whilst performing an asset management audit of the Accounts Dept you suspect that the manager, who has an annual IT budget of $6,000,000, of claiming purchase of hardware that doesnt exist in reality and of keeping the funds for herself. Explain how would you handle this and discuss the advantages and disadvantages of each of the following options:

1. discuss this privately with her and suggest she stop this practice
2. pretend you never noticed the problem
3. report this immediately to her boss, the Chief Finance Officer
4. discuss this with your boss, the Chief IT Auditor
5. Discuss which of the above you consider to be the best option and explain why.