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You are auditing the financial report of Antique Autos Pty Ltd for the yearended 30...

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Accounting

You are auditing the financial report of Antique Autos Pty Ltd for the yearended 30 June 2018. Antique Autos purchases antique vehicles at auction, restoresand repairs them, then sells them to the general public. As this is the first year that your firm has conducted Antique Auto s audit, you meet the owner, EnzoCattalini, and discover the following:

Antique Autos is a small owner-managed business, with a simple organisationalstructure and information system.

Most employees at Antique Autos are related to the owner and, due to the limited size ofthe entity, there is very little separation of duties.

Enzo trusts the staff members due to their relationships to him, resulting in Enzo notpaying much attention to the controls at Antique Autos.

Antique Autos has an exclusive focus on sales and market share.

Enzo admitted that attimes he has considered the finance department as a bit of an afterthought.

REQUIRED Explain whether you would take a substantive approach or an approach

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