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You have recently been hired to run the accounting department for Ajax Enterprises. Despite increasing sales, Ajaxhas had financial problems recently. As you review the books for Ajax, you notice some entries which trouble you. Upon further investigation, you discover that the former head of the accounting department was utilizing company funds for his personal use. When you call him to verify this, he admits having taken the funds and tells you that he is in the process of procuring a loan and will pay the entire amount back to Ajax. He asks that you not tell anyone atAjax or anywhere about this matter since he has just started a new job as Chief Financial Officer for a Fortune 500 company. If he loses the job, it may cause him to not be able to procure the loan and, therefore, ruin his ability to repay Ajax. You know that, if he cannot repay Ajax, the financial result would be severely damaging to its business. What actions if any, will you take? Explain why you have decided to take the course of action you chose.
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