The company has

good internal controls, which addresses and is based on the generally accepted

components of internal control, namely,

·       the control environment

·       the risk assessment process

·       the information system relevant to financial reporting

·       control activities

·       the monitoring of controls

The following

piece of information relates to the payroll and personnel cycle of a company:

The company uses

a payroll software application that is compatible with the SARS e-filling

system.

From the

following list of options, identify the component of internal control to which

the above statement relates: