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The managerial accountant reviews the report from the internal audit function that ensures the company's internal controls and risk management policies are functioning properly. According to the report, there were discrepancies in the internal controls that are not in conformance with the organizational policy and applicable law. The managerial accountant suspects that the CEO is embezzling $30,000 per quarter. What should the managerial accountant do about this discrepancy? If the accountant fails to act on this issue, what standard according to the IMA Statement of Ethical Professional Practice does the accountant violate?
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