Lenovo 2012 Annual Report Download - page 63

2011/12 Annual Report Lenovo Group Limited 61
• ReviewedandrecommendedtotheBoardfor
approval the amendments to the terms of reference of
the Audit Committee; and
• Reviewedandapprovedthatannualagendaofthe
Audit Committee for the fiscal year 2011/12.
At the meeting held on May 22, 2012, the Audit Committee
reviewed and recommended to the Board the approval
the audited financial statements of the Group for the year
ended March 31, 2012 together with the related annual
results announcement and this annual report incorporating
the directors’ report and corporate governance report.
INTERNAL CONTROLS
The Group’s internal control system covers every activity
and transaction. Within this framework, management
performs periodic enterprise wide risk assessments and
continuously monitors and reports the progress of actions
plans to address the key risks. Based on the information
received from management, external auditor and internal
audit, the Audit Committee concluded that for the year
ended March 31, 2012, the Group’s internal control system
was adequate and effective. Further information about the
internal controls framework and control processes are set
out in the Corporate Governance Report on pages 46 to
48. The Audit Committee also confirmed that the Group
had, in the fiscal year 2011/12, satisfactorily complied with
the code provisions on internal controls as set forth in the
Code on Corporate Governance Practices in Appendix 14
to the Listing Rules.
RECOMMENDATION FOR RE-APPOINTMENT
OF EXTERNAL AUDITOR
The Audit Committee recognizes the importance of
maintaining the independence of external auditor.
Consistent with its terms of reference, the Audit Committee
has evaluated PwC’s qualifications, performance, and
independence, including that of the lead audit partner.
The Company has established a policy pursuant to which
non-audit services, provided by the external auditor must
be pre-approved by the Audit Committee. This policy is
more fully described in the Corporate Governance Report
on page 49. The Audit Committee has concluded that
provision of the non-audit services described in that section
was compatible with maintaining the independence of PwC.
In addition, PwC has provided the Audit Committee an
independence statement confirming that for the year ended
March 31, 2012 and thereafter to the date of this annual
report, they are independent of the Group in accordance
with the independence requirements of the Hong Kong
Institute of Certified Public Accountants.
Based on the review and discussions referred to above, the
Audit Committee was satisfied with the external auditor’s
work, its independence and objectivity, and therefore
recommended to the Board the re-appointment of PwC
as the Group’s external auditor for the financial year
ending March 31, 2013 for shareholders’ approval at the
forthcoming annual general meeting to be held on July 3,
2012.
Members of the Audit Committee
Mr. Nicholas C. Allen (Chairman)
Professor Woo Chia-Wei
Mr. Ting Lee Sen
Ms. Ma Xuezheng