Is the iPad jail broken?
Unless the iPad has been Jail Broken, it cannot have any spyware on it.
If the boss pre-configured the iPads with Find my iPad, or pre-setup Find My Friends for the iPad, then at best the boss could track where the device is, as long as it is connected to a WiFi system (assuming these are WiFI only iPads).
The Find My iPad and Find My Friends can be changed, or your friend can go to Settings -> General -> Reset -> Erase All Content and Settings, to put the iPad back to Factory Settings.
NOTE: If your friend configures the iPad to use the work email service, then the boss may have access to the work's mail server and read those emails. That is to say, and thing your friend sends or receives over the network that goes through servers controlled by her boss, he may have access to that information.
But as long as your Friend is NOT using work related services, the boss should not have access to anything your Friend does.
Thanks to both of you! we will try to figure out it is jailbroken... He is paying for the 3G service so he knows the location and general use info. Our only worry is if he could tracking emails and passwords. Other than that... no worries!