Lenovo 2016 Annual Report Download - page 107

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2015/16 Annual Report Lenovo Group Limited
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
85. 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, 2016 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, 2017 for shareholders’
approval at the forthcoming annual general meeting to be held on July 7, 2016.
PERFORMANCE AND EFFECTIVENESS
The Board undertook an annual review of its committees’ performance and effectiveness. The review
concluded that overall the Audit Committee was effective in carrying out its duties. Details of the Board
and Board committees’ review can be found under “Board and Board Committees’ Effectiveness Review”
as set out in the Corporate Governance Report on pages 74 to 76.
PRIORITIES FOR FY2016/17
Looking ahead, the priorities of the Audit Committee for the fiscal year 2016/17 are:
• To stay focused on financial accounting and reporting, audit quality, risk management and internal
controls.
• To remain vigilant on the impacts of the economic conditions on the Group.
• To focus on the integration of the Group’s control processes into new acquisitions.
Members of the Audit Committee
Mr. Nicholas C. Allen (Chairman)
Ms. Ma Xuezheng
Mr. William Tudor Brown