What does the auditor do?
Below are 3 alternative solutions on what to do in this situation. Read them carefully and discuss with your line manager.
Alternative 1
Tell his father about the potential risk and advise him to sell all the shares.
Alternative 2
Advice his father to sell the shares without exposing the real risk.
Alternative 3
Do nothing, even though you know that the father will loose a major part of his pension.
During a management System Audit of an oil refinery, an auditor is reading through a confidential management review report. In the report, under environmental issues, the auditor reads about a major problem from an oil spill and a possible law suits. The management fears negative press and heavy penalties. The father of the auditor has saved for his old-age retirement in shares in the very same company.