You are an Accountant in the Accounts Payable Department for a small company. Your Manager, who is also a very close family friend, comes into your office and asks you for a company check for $275 to reimburse him and cover the expenses he tells you he incurred entertaining a business client the previous night. He submits receipts from the restaurant to you. At the end of the day, your managers girlfriend comes by to pick him up. You overhear her telling the company receptionist that she had a great time at dinner with your manager the night before.

What ethical concerns come to mind? What do you do?