Bob Smith, CFA, is an outside board member of Atlantic Technologies, but is not paid by the firm for his services. An employee at Atlantic informs Smith that Atlantic has improperly timed the booking of contracts to achieve the desired quarterly financial results. The misleading financial statements would turn losses into profits. Smith confers with the firm’s legal counsel who indicates that this conduct is, in fact, illegal. Smith urges Sharon White, Atlantic’s chief operating executive, to change the financial statements, but she refuses to do so. According to CFA Institute Standards of Professional Conduct, which of the following statements best describes what Smith should do in this situation （）

A. Smith should immediately make CFA Institute aware of the situation at Atlantic.
B. Smith should wait until the next board meeting, which is scheduled in two weeks, to make other board members aware of the situation.
C. Smith should promptly disassociate himself from Atlantic’s actions by resigning as a director or by reporting the activities to the appropriate authorities.