Huawei 2013 Annual Report Download - page 115

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The key roles and responsibilities of the Audit
Committee include:
■Approving the internal audit plan of the year;
reviewing the scope of the internal audit plan,
resources required for its execution, and the
results of the execution.
■Approving corporate policies related to internal
control management; approving the company’s
internal control development plan and key
milestones; regularly assessing the company’s
overall internal control posture.
■Overseeing the effectiveness of the ethics
and compliance function, and the company’s
compliance with legal and regulatory
requirements as well as corporate policies.
■Reviewing the selection of external auditors;
reporting the change of external auditors to
the BOD for approval, and approving all related
fees; assessing the effectiveness of external
auditors’ performance.
■Supervising the integrity, completeness, and
legal compliance of the company’s financial
statements; reviewing accounting policy
compliance and application as well as disclosure
of financial statements.
■The Audit Committee approves the control
KPIs at the beginning of each year, and has the
right to summon Global Process Owners (GPOs)
and business executives to report their control
work.
The Audit Committee meets on a quarterly basis
and convenes special sessions as needed. At
the invitation of the Audit Committee, business
executives and subject matter experts may attend
the meetings as non-voting participants. The Audit
Committee held five meetings in 2013. Focusing
on topics such as risk management and internal
control construction and promotion, the Audit
Committee reviewed and approved the annual
internal audit planning and the annual planning
for global process control construction, and
received reports on the trend analysis of Internal
Control Maturity (ICM), the Semi-Annual Control
Assessment (SACA), GPOs’ control improvements,
the internal control framework and responsibility
system assessment, etc. The Audit Committee also
improved employee compliance with Huawei’s
BCG by publicizing major audit findings and non-
compliance cases. In addition, the Chairman of
the Audit Committee discussed the management
improvement proposal with the external auditor.
The Audit Committee is comprised of eight
members, including members of the Supervisory
Board, BOD members, and subject matter experts.
The Chairman of the committee is Mr. Liang Hua.
The members include Mr. Peng Zhiping, Mr. Ren
Shulu, Mr. Tian Feng, Mr. Li Jie, Mr. Peng Zhijun,
Mr. Hui Chun, and Mr. Zhou Daiqi.
Supervisory Board
Pursuant to the requirements of the Company
Law of the People’s Republic of China, Huawei
has established a Supervisory Board. The key
roles and responsibilities of the Supervisory
Board include overseeing the company’s financial
and operational performance, monitoring the
responsibility fulfillment of BOD members and
senior management, as well as the standardization
of BOD operations. Members of the Supervisory
Board attend BOD meetings as non-voting
participants.
114 Corporate Governance Report