During audit of Kentucky manufacturing client on LG&E, I found evidence that facilities manager has been submitting false meter readings for special contract rate verification. Company is underpaying by about $800/month. Do I report this to LG&E, the client management, or both?
Discovered billing fraud by client's employee - what's my obligation?
Report to client management first. Give them chance to address internally before involving utility. Document everything.
I had similar case in Tampa with TECO. Reported to client CEO. They handled it internally and corrected the billing voluntarily. Avoided criminal charges.
You have professional obligation to the client, not individual employees. Report up the chain within the organization first.
Client confidentiality extends to reporting fraud to management, but if they refuse to address it, you may need to withdraw from the engagement. Document your recommendation and their response carefully.