While auditing the leave system, internal auditor X noticed that accumulated leave earned by workers who resign is not compensated as required by labour legislation. The financial director justified this practice by explaining that the organisation cannot afford this additional expense. Internal auditor X accepted the financial director$$s explanation and decided not to disclose the matter to the audit committee. Required Is the action of internal auditor X acceptable? What principle$($s$)$ and standard $($s$)$ does this relate to