Please help solve all please HMD Corporarion operates a high end manufacturing facility. The capital intenstenature of the corporation's operations makes internal control ver the aquivition and theuse of fixed wsets important management objectives.At the beginming of every financial vear. UMD erepares a fised aset budget that wouldindicate the planning on their capital expenditure. To prepare this, managers from cachdepartment would request capital expenditure from the senior management. This requiresthem to complete a fixed asset requisition form, which must be approved by the seniormanagement team. HMD has established PPE (property, plant and equipment) guidanceand policies that will determine whether the fixed asset requisition is to be considered ascapital expenditure or revenue expenditure.The management committee will meet each month to review the budget reports. Amongother things, the committee will also comnare actual outcome incurred by the managersto their forecasted figures; and to authorize any additional expenditure needed. Thecommittee also reviews and approves any request for asset disposal.The entire relevant document pertaining to the fixed assets request will be forwarded to theaccounting department, including copies of vouchers used to document any department'srequests for their asset disposal. As any other accounting department, they are responsibleto maintain all the company accounts including the fixed assets.Among the policies of HMD, when an asset is acquired, it will be tagged for identification andother necessary documentation. This important documentation is needed for subsequentmeasurement and updating the fixed asset ledger. Depreciation will be estimated at yearend and posted to the general ledger, together with physical inventories of fixed assets.Required:(a) Identify the internal controls over the fixed assets at HMD, based on the followingcontrols:(i) Authorization;(ii) Accurate transaction;(iii) Recorded transaction; and(iv) Reasonableness of recorded transactions.(b) Determine the adequate controls that may exist to safeguard the assets.

a) The internal controls over the fixed assets at HMD. i) Authorization - Monthly review is done by…

Required: (a) Identify the internal controls over the fixed assets at HMD, based on the following controls: (1) Authorization; (ii) Accurate transaction; (iii) Recorded transaction; and (iv) Reasonableness of recorded transactions. b) Determine the adequate controls that may exist to safeguard the assets.