"Ugh, what a tricky predicament you find yourself in! Unfortunately, I think your only real course of action is to tell your boss. Acknowledge that this is probably going to be a tough thing for him to hear, and you're sorry to have to be the one to break the news to him, and walk him through how you found the culprit."
"Of course, you'll need to make sure your internal investigation is ironclad; make sure you have it in writing, and keep a copy of the investigation printed out away from the office in case things go south. I think you're right to be concerned about his possible reaction, but I also have a feeling that, given the timing, he already suspects his son and couldn't bring himself to conduct the investigation himself."
An internal investigation found embezzlement traced to the boss's son, Eric. The investigator must inform the boss despite anticipated emotional fallout. The investigation should be ironclad, documented in writing, and a printed copy kept outside the office as backup in case of retaliation. The timing of the misconduct suggests the boss may already suspect his son but avoided investigating. Deliver the news with sympathy, explain how the evidence was obtained, and be prepared for a difficult response. The investigator's duty to company integrity supersedes personal discomfort given conclusive evidence.
Read at Slate Magazine
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