senior

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I am working in office where the boss does not come everyday but comes only once or twice a week.My office enviornment is very good and i enjoy a very good reputation .I hve a senior whom i respect alot and she is also very supportive and always helps me in my problems.What i cannot digest about her that she is not a trustworthy employee of the organisation.She is misappropraiting the funds,entering false payment vouchers and manipulating accounts. I do not know what to do?Should i tell my boss about this or be silent as i share a very good relationship with her.I am confused.