Part A (5 Marks) You are auditing the financial report of Shad Group Pty Ltd for the year ended 30 June 2018. Shad Group purchases antique vehicles at auction, restores and repairs them, then sells them to the general public. As this is the first year that your firm has conducted Shad Group's audit, you meet the owner, Charlie, and discover the following: 1. Shad Group is a small owner-managed business, with a simple organisational structure and information system. 2. Most employees at Shad Group are related to the owner and, due to the limited size of the entity, there is very little. separation of duties. 3. Charlie trusts the staff members due to their relationship to him, resulting in Charlie not paying much attention to the controls at Shad Group. 4. Shad Group has an exclusive focus on sales and market share. Charlie admitted that at time he has considered the finance department as a bit of an afterthought. REQUIRED Explain whether you would take a substantive approach or an approach that uses tests of controls as well as substantive procedures (combined approach) In undertaking the audit