Lenovo 2016 Annual Report Download - page 106

104 Lenovo Group Limited 2015/16 Annual Report
AUDIT COMMITTEE REPORT
OTHERS
During the fiscal year 2015/16, the Audit Committee also:
• Reviewed the worldwide accounting organization of the Group and the succession planning of the
finance organization of the Group;
• 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 the funding plan and funding for long-term incentive programme of the
Group;
• Reviewed the tax update for the Group;
• Reviewed the continuing connected transactions with Compal Electronics, Inc.;
• Reviewed and approved the amendments to the terms of reference of the Audit Committee;
• Reviewed and approved the Audit Committee report for the fiscal year 2014/15;
• Reviewed and approved the annual agenda of the Audit Committee for the fiscal year 2015/16.
At the meeting held on May 25, 2016, 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, 2016 together with
the related annual results announcement and this annual report incorporating the directors’ report and
corporate governance report.
REVIEW OF RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS
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. Further information about the risk management
and internal controls framework and control processes are set out in the Corporate Governance Report on
pages 77 to 84.
Based on the information and confirmation received from management, external auditor and internal
auditor, the Audit Committee concluded that for the year ended March 31, 2016, the Group’s risk
management and internal control systems were adequate and effective. The Audit Committee also
confirmed that the Group had, in the fiscal year 2015/16, satisfactorily complied with the code provisions
on risk management and internal controls as set forth in the Corporate Governance Code and Corporate
Governance Report in Appendix 14 to the Listing Rules.