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Lenovo Group Limited • Annual Report 2007/08
42
CORPORATE GOVERNANCE
EXTERNAL AUDITORS
The Group’s external auditors are PricewaterhouseCoopers, who are remunerated mainly for their audit
services provided to the Group. The Company has adopted a policy on engagement of external auditors for non
audit services (the “Policy”), under which the external auditors are required to comply with the independence
requirements under Code of Ethics for Professional Accountants issued by Hong Kong Institute of Certified Public
Accountants. External auditors may provide certain non-audit services to the Group provided these do not involve
any management or decision making functions for and on behalf of the Group; or perform any self assessments; or
acting in an advocacy role for the Company. The engagement of the external auditors for permitted and approved
non-audit services shall be approved by the Audit Committee if the value of such non-audit services equals to or is
above US$320,000.
During the year, PricewaterhouseCoopers provided audit and insignificant non-audit services to the Group.
The fees paid or payable to PricewaterhouseCoopers for audit and non-audit services for the financial year ended
March 31, 2008 and the comparative figures for the financial year ended March 31, 2007 are as follows:
2008 2007
US$mn US$mn
Audit
– 2005/06 –1.9
– 2006/07 1.3 4.2
– 2007/08 4.9 –
6.2 6.1
Non-audit 0.4 0.3
Total 6.6 6.4
INTERNAL CONTROL
The Board acknowledges its responsibility to ensure the Company maintains sound and effective internal controls.
This is achieved through a defined management structure with specified limits of authority and defined control
responsibility to:
• Achievebusinessobjectivesandsafeguardassetsagainstunauthorizeduseordisposition;
• Ensuremaintenanceofproperaccountingrecordsfortheprovisionofreliablefinancialinformationforinternal
use or for publication; and
• Ensurecompliancewiththerelevantlegislationandregulations.
To achieve this the Company has established an integrated framework of internal controls which is consistent with
the COSO (the Committee of Sponsoring Organizations of the Treadway Commission) framework.