Lenovo 2015 Annual Report Download - page 90

88 Lenovo Group Limited 2014/15 Annual Report
AUDIT COMMITTEE REPORT
INTERNAL AUDIT AND CONTROLS
To discharge the responsibility of reviewing and monitoring the effectiveness of the Group’s internal control and risk
management systems, the Audit Committee received regular reports from the Chief Auditor and if required from
management including legal and other business units. At each meeting, the Audit Committee reviewed the process
for identifying, assessing and reporting key risks and control issues of Group. The Audit Committee:
• Discussed the yearly internal audit plan of the Group to ensure adequate scope, coverage over the activities of
the Group and the resource requirements of internal audit to carry out its functions and also reviewed the results
of the internal audit work quarterly;
• Reviewed the effectiveness of the internal control system (including the adequacy of resources, staff qualification
and experience, training programmes and budget of the Group’s internal audit, accounting and financial reporting
function) operating in the Group and reviewed the corrective actions taken by the management;
• Reviewed the control issues of Group level significance and specific control issues. The Audit Committee was
particularly concerned to understand the potential impact on resources in those businesses as they integrate and
automate and standardise processes and controls;
• Reviewed the enterprise risk management of the Group including a summary of the risk management status and
the action plans for the fiscal year 2014/15; assessed the risk universe and the high risk items and reviewed the
steps taken by management to control these risks;
• Reviewed the management letter point status and reviewed the actions/processes undertaken by the Group;
EXTERNAL AUDIT
To discharge the responsibility of overseeing the Board’s relationship with the external auditor and monitoring the
external auditor’s performance, objectivity and independence and also the effectiveness of the audit process, the
Audit Committee:
• Reviewed and considered the external auditor’s statutory audit scope and results for the fiscal year 2013/14,
including their plan and the terms of engagement, and the letter of representation to be given by the Board in
respect of the financial year ended March 31, 2014;
• Reviewed and considered the external auditor’s audit plan and scope for the fiscal year 2014/15;
• Reviewed the results of the audit and the reports submitted by external auditor, which summarised matters arising
from their audit on the Group during the year ended March 31, 2015, together with management’s responses
and/or comments to the findings;
• Assessed the external auditor’s independence and objectivity including a review of the non-audit services
provided by the external auditor;
• Evaluated the performance of PwC and recommended to the Board for approval of the re-appointment PwC as
external auditor of the Group for the year ended March 31, 2015;