Lenovo 2014 Annual Report Download - page 59
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57
2013/14 Annual Report Lenovo Group Limited
ACCOUNTABILITY AND AUDIT
Financial Reporting
The Board acknowledges its responsibility for presenting a balanced, clear and comprehensive assessment of the
Company’s performance, position and prospects. The Board is also responsible for the preparation of financial
statements for each financial year which gives a true and fair view of the state of affairs of the Group on going concern
basis while the external auditor’s responsibilities to shareholders are set out in the Independent Auditor’s Report on
page 123 of this annual report.
Internal Control
The Board acknowledges its responsibility to ensure the Company maintains sound and effective internal controls. This
is achieved through a defined management structure with specified limits of authority and defined control responsibility
to:
• Achieve business objectives and safeguard assets against unauthorized use or disposition;
• Ensure maintenance of proper accounting records for the provision of reliable financial information for internal use
or for publication; and
• Ensure compliance with the relevant legislation and regulations.
To achieve this, for many years the Company has had in place an integrated framework of internal controls which is
consistent with the COSO (the Committee of Sponsoring Organizations of the Treadway Commission) framework.
Control Environment
Risk Assessment
Control Activities
Information & Communication
Monitoring Activities
Entity
Division
Operating Unit
Function
Operations
Reporting
Compliance
• Control Environment
The internal organizational environment
driven by the management operating
philosophy, risk appetite, integrity, and
ethical values.
• Risk Assessment
Risks are identified and the likely impact on
the organization is assessed.
• Control Activities
Policies and procedures are implemented
to ensure organizational objectives and risk-
mitigation activities are effectively executed.
• Information and Communication
Relevant information is communicated in
an acceptable format and timely fashion
to enable the organization to meet its
objectives.
• Monitoring
The internal control process is continually
monitored. Modifications are made to
improve internal control activities as a result
of the monitoring process.