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AUDIT COMMITTEE REPORT
Lenovo Group Limited 2012/13 Annual Report
66
THE AUDIT COMMITTEE
The audit committee (the “Audit Committee”) of the board of directors (the “Board”) of Lenovo Group Limited (the
“Company”) has been established since 1999 and as at the date of this annual report, is comprised of three members, all
of whom are non-executive directors and the majority of whom including the Audit Committee chairman are independent
non-executive directors.
The members who held office during the year and up to the date of this annual report are:
Chairman Mr. Nicholas C. Allen Independent non-executive director
Member Mr. Ting Lee Sen Independent non-executive director
Member Ms. Ma Xuezheng Non-executive director
Member Professor Woo Chia-Wei Independent non-executive director (resigned on July 3, 2012)
The chairman, Mr. Allen has appropriate professional qualifications being a member of the Institute of Chartered
Accountants in England and Wales and a member of Hong Kong Institute of Certified Public Accountants, and experience
in accounting or related financial management expertise as required under the Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited (the “Listing Rules”).
RESPONSIBILITIES
The Audit Committee is responsible for assisting the Board in carrying out its responsibilities in relation to financial reporting
requirements, risk management and the assessment of internal controls. It also reviews the effectiveness of the Company’s
internal audit function and manages the Company’s relationship with PricewaterhouseCoopers (“PwC”), the external
auditor. It acts in an advisory capacity and makes recommendations to the Board. The main responsibilities of the Audit
Committee can be grouped into four different areas of competency:
AUDIT COMMITTEE
Main areas of oversight
Financial Reporting
• The quality and
acceptability of
accounting policies
and practices
• The clarity of the
disclosures and
compliance with
financial reporting
standards
• Material areas in
which significant
judgements have
been applied
Internal Audit and
Controls
• Effectiveness of
internal control
system
• Scope of the internal
audit work
• Analysis of main areas
of risk
• Efficiency of internal
audit function
External Audit,
Engagement and
Policies
• Appointment and
remuneration
• Scope of the audit
work
• Independence
requirements
• Significant audit
points
• Assessment of
performance of
external auditor
Others
• Tax and treasury
matters
• Key litigation and legal
exposure
• Compliance with
ethical rules and
concerns
• Related-party
transactions