Lenovo 2015 Annual Report Download - page 91

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2014/15 Annual Report Lenovo Group Limited
OTHERS
During the fiscal year 2014/15, the Audit Committee also:
• Received and reviewed the reports from General Counsel regarding legal matters of the Group;
• Reviewed the Ethics and Compliance program including the whistleblowing procedure of the Group for employees
to raise concerns about possible improprieties in financial reporting, internal controls or other matters, and the
enhancements to this program;
• Reviewed and discussed with the management on the major contemplated and completed transactions of the
Company;
• Reviewed the IT recovery plan and cybersecurity of the Group;
• Reviewed the tax update for the Group;
• Reviewed and approved the Audit Committee report for the fiscal year 2013/14;
• Reviewed and approved the annual agenda of the Audit Committee for the fiscal year 2014/15.
At the meeting held on May 20, 2015, the Audit Committee reviewed and recommended to the Board the approval
of the audited financial statements of the Group for the year ended March 31, 2015 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, 2015, 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 69 to 74. The Audit Committee also confirmed that the Group
had, in the fiscal year 2014/15, 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 74. 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, 2015 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, 2016 for shareholders’ approval at the forthcoming annual
general meeting to be held on July 2, 2015.