Lenovo 2013 Annual Report Download - page 71

2012/13 Annual Report Lenovo Group Limited 69
• Reviewed the cash management and investment of
the Group;
• Reviewed the tax update of the Group;
• Reviewed and approved the annual agenda of the
Audit Committee for the fiscal year 2012/13.
At the meeting held on May 22, 2013, the Audit Committee
reviewed and recommended to the Board the approval
the audited financial statements of the Group for the year
ended March 31, 2013 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
auditor, the Audit Committee concluded that for the year
ended March 31, 2013, 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 53 to
56. The Audit Committee also confirmed that the Group
had, in the fiscal year 2012/13, satisfactorily complied with
the code provisions on internal controls as set forth in the
Corporate Governance Code and Corporate Governance
Report in Appendix 14 to the Listing Rules.
RECOMMENDATION FOR RE-APPOINTMENT
OF THE EXTERNAL AUDITOR
The Audit Committee recognizes the importance of
maintaining the independence of the 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 57. 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, 2013 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 the re-appointment of PwC as the Group’s
external auditor for the financial year ending March 31,
2014 for shareholders’ approval at the forthcoming annual
general meeting to be held on July 16, 2013.
PERFORMANCE AND EFFECTIVENESS
The Board undertook an annual review of its committees’
performance and effectiveness. The review concluded that
overall the Audit Committee was effective in carrying out
its duties. Details of the Board and Board committees’
evaluation process can be found under “Board and Board
Committees’ Evaluation” as set out in the Corporate
Governance Report on pages 52 to 53.
PRIORITIES FOR 2013/14
Looking ahead, the priorities of the Audit Committee for the
fiscal year 2013/14 are:
• To stay focused on financial accounting and reporting,
audit quality, internal controls and risk management.
• To remain vigilant on the impacts of the economic
conditions on the Group.
• To focus on the integration of the Group’s control
processes into new acquisitions and joint ventures.
Members of the Audit Committee
Mr. Nicholas C. Allen (Chairman)
Mr. Ting Lee Sen
Ms. Ma Xuezheng