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In a case like that you just need to play it by the book. I mean, literally point out to your CEO what the standard is and show how you're adhering to it. Maybe Dave was a good guy, but it's good to put the Dave era in the rearview mirror.
The problem is that if you are now aware of those “creative” choices, you are partially responsible. Make notes of all of this and cover yourself. I would quietly go about it the correct way and only bring it up in terms of this is an even better way.