Smith and Co is considering preliminary audit strategy for Well Ltd. Well Ltd is an established company with well-documented systems and controls. It has an internal audit function whose principal activity is to monitor the implementation and effectiveness of existing controls.
Which of the following statements would be correct about the reliability of audit evidence of Well Ltd?
A . To be reliable, evidence of Well Ltd should be conclusive rather than persuasive
B . Effective internal control system of different systems of Well Ltd can provide reliable audit evidence
C . Evidence obtained from outside sources routed through Well Ltd will be more reliable
D . Limited internal control system of Well Ltd can provide reliable audit evidence
Answer: B