Lenovo 2009 Annual Report Download - page 51

2008/09 Annual Report Lenovo Group Limited
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In selecting the audits to perform each year, Internal Audit uses information collected throughout the year from process
owners, the risk assessment team, senior executives, external auditors and the Board of Directors. The developed audit
plan is reviewed by the Audit Committee, who are also given quarterly updates on the performance of the plan and key
findings. Ad hoc reviews may also be performed on areas of concern identified by Management or the Audit Committee.
Internal Audit also perform internal investigations related to allegations of business conduct violations. Internal Audit
partners with Legal, Human Resources, and subject matter experts where necessary to ensure the appropriate
expertise when performing these investigations. The management of the business units and process are informed of any
required actions resulting from these reviews, and Internal Audit monitors the corrective actions to completion.
To ensure that Internal Audit is following best practice, multiple project teams have been established utilizing auditors
from all geographies to research and implement the best practice for each step of the audit process. Once the best
practice has been determined by the responsible project team, it is presented to the Internal Audit “Process Council”
which consists of the Audit Directors and representatives from each geography, for review and implementation. In
addition, to help ensure the quality of the Internal Audit function and provide assurance that the Internal Audit function is
in conformity with the Standards of the Institute of Internal Auditors, the Audit Committee periodically commissions an
independent external quality assurance review of the Internal Audit function.
Regarding procedures and internal controls for the handling and dissemination of price-sensitive information, the
Company is aware of its obligations under the Listing Rules and the overriding principle that information which is
expected to be price-sensitive should be announced immediately it is the subject of a decision. The Company conducts
its affairs with close regard to the “Guide on Disclosure of Price-sensitive Information” issued by the Hong Kong
Stock Exchange in 2002 and has implemented policies and procedures which strictly prohibit unauthorized use of
confidential and sensitive information, and has communicated to all relevant staff regarding this matter. In addition, only
Directors and delegated officers can act as the Company’s spokesperson and respond to external enquiries about the
Company’s affairs.
The Board, through the Audit Committee of the Company, conducts a continuous review of the effectiveness of
the internal control system operating in the Company and considers it is adequate and effective. The review covers
all material controls, including financial, operational and compliance controls, and risk management functions. The
Board is not aware of any significant areas of concern which may affect the shareholders. The Board is satisfied that
the Company has fully complied with the code provisions on internal controls as set forth in the Code on Corporate
Governance.