You are the Audit Manager at a firm called Sass Auditors. You have been assigned to the audit of Greenpoint (Pty) Ltd ("Greenpoint") and are currently finalising the June 2023 audit. Background information of Greenpoint Greenpoint's Head Office is situated in the Western Cape with branches in Cape Town, Port Elizabeth, East London, and Johannesburg. Greenpoint owns a fleet of trucks that are used to provide transportation services. Greenpoint offers high-quality transportation at excellent prices and has become a leader in the freight & container transport industry. They have various fleets consisting of heavy-duty trucks, trailers, side loaders, side tippers, low beds, 12m flat decks, and 18m link trailers to offer a specialized transportation experience focused on each client's unique needs. All trucks have satellite tracking to enable effective control of all their operations. The final materiality for Greenpoint is set at R2 million. The annual general meeting is planned for 17 September 2023 and the annual financial statements ("AFS") will be circulated on 30 August 2023. Greenpoint has six directors. Unresolved audit matter: Credit cards During the performance of substantive tests on expenses, the First Year Clerk noticed that certain payments are made by credit cards. You inquired from the Financial Manager regarding credit card payments and were informed that all the Directors of Greenpoint have been issued credit cards. The Directors may incur any expense and they are not required to submit any supporting documentation to the company regarding their credit card expenditure. Each Director's credit card is credited with an amount of R50 000 every month. All these approvals/payments are done by the Financial Manager. The credit cards are disclosed as administrative expense accounts as it is the hope of the company that the Directors will use the credit cards for business expenses. No other disclosures are made regarding the credit cards given to the Directors. You asked the Financial Manager if they are aware of section 66 of the Companies Act which states: empowers the Board of Directors of a company to manage the business and affairs of a company. The Financial Manager responded by stating that they are fully aware of section 66 of the Companies Act but the Directors are happy and content with the current structures and internal controls in place in relation to credit card payments. REQUIRED: Discuss whether the unresolved audit matter described above is a reportable irregularity, and describe the amendments you would request management to make in order to correct this matter in the Annual Financial Statements. Also include a conclusion in your answer.