Lenovo 2016 Annual Report Download - page 101

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99
2015/16 Annual Report Lenovo Group Limited
AUDIT COMMITTEE REPORT
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 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 Ms. Ma Xuezheng Independent non-executive director
Member Mr. William Tudor Brown Independent non-executive director
Member Mr. Ting Lee Sen Independent non-executive director (retired on
July 2, 2015)
The chairman, Mr. Allen has appropriate professional qualifications being a fellow 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”). More information on the skills and experience of the members of Audit Committee may be found
in the directors’ biographies set out on pages 140 to 143 of this annual report.
RESPONSIBILITIES
The Audit Committee is delegated by the Board with responsibility to provide an independent review of
the financial reporting, and assess the effectiveness of risk management and internal control systems.
It also reviews the adequacy 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 below 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
OTHERS
Tax and treasury matters
Key litigation and legal exposures
Compliance with ethical rules and concerns
RISK MANAGEMENT AND INTERNAL CONTROL
Effectiveness of risk management and internal control systems
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