Lenovo 2016 Annual Report Download - page 105

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2015/16 Annual Report Lenovo Group Limited
RISK MANAGEMENT AND INTERNAL CONTROL
To discharge the responsibility of reviewing and monitoring the effectiveness of the Group’s risk
management and internal control 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 enterprise risk management of the Group including the risk management status, risk
registration and the action plans for the fiscal year 2015/16; 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
2014/15, 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, 2015;
• Reviewed and considered the external auditor’s audit plan and scope for the fiscal year 2015/16;
• 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, 2016, 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, 2016;