According to Section 1 of the Auditing Profession Act, reportable irregularity is defined as, any unlawful act or omission committed by any person responsible for the management of a corporation, who has caused or likely to cause material financial loss of the entity or stakeholders, fraudulent of amounts to theft, represents a material breach of any fiduciary duty. (independent regularity board for auditors, 2015) Laws and regulations Ethics and business conduct plays a significant role in all professional corporations. In demonstrating the core values, the code of conduct aims to improve the transparency of business processes. The purpose of the code of conduct is to protect the corporation’s reputation in the event of a breach of conduct by the employees of the corporations. As such, the framework of the conduct …show more content…
As such, the code of conduct is able to promote the values, principles, standards and norms highlight the behaviour of stakeholders such as directors, employees and employers. Transnet’s code of conduct emphasises on the fundamental principles of ethical behaviour, such as integrity, confidentiality, professional behaviour objectivity and competence and due care, in order to allow stakeholders to be able to engage in an efficient and effect manner. Code of Conduct states the following: 1. Transnet employees should not accept any form of consideration from suppliers. 2. Acquire business and influence decisions of any person involved in the decision-making process to gain an improper advantage. 3. Transnet “Tip-offs Anonymous” Hotline to report these fraudulent acts – 0800 003 056 (Integrated report , 2015) Transnet’s senior official breached Transnet’s Code of Conduct by accepting the consideration (R300 000 bribe) from the service provider/supply in exchange to transfer the liability of the delays to Transnet, which were caused by the service