Lenovo 2014 Annual Report Download - page 74

72 Lenovo Group Limited 2013/14 Annual Report
AUDIT COMMITTEE REPORT
In the fiscal year ended March 31, 2014, the Audit Committee held four meetings, with all members in attendance
at each meeting. The attendance record of the Audit Committee’s members is set out in the Corporate Governance
Report on page 54 and the chart below shows how the Audit Committee allocated its time during the fiscal year
2013/14.
Audit Committee
Allocation of agenda time
FY2013/14 FY2012/13
Financial reporting 44% 40%
Internal audit and controls 17% 20%
External audit matters and engagement 16% 15%
Others (including legal, tax and treasury matters) 23% 25%
• Received reports from and met with external auditor
and internal auditor to discuss the scope of their
review and findings;
• Reviewed and discussed with management on
significant judgements and key assumptions together
with presentational and disclosure issues associated
with accounting standards and interpretive guidance
affecting the Group’s financial statements and
financial results announcements; items reviewed
and discussed included (a) the accounting treatment
for acquisitions; (b) the purchase price allocation
following the establishment of joint venture and
acquisition; (c) the accounting treatment on the
Group’s goodwill and (d) the accounting provisions
and treatments for warranty costs, indirect tax
receivables, inventories and employees benefits
plans;
• Reviewed worldwide accounting and finance business
transformation organization of the Group;
To discharge the responsibility of reviewing and
monitoring the effectiveness of the Group’s internal control
and risk management 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:
Internal Audit and Controls
The main matters and areas that the Audit Committee
reviewed and considered at its four meetings during the
year were as follows:
With the support of the external auditor, the Audit
Committee assessed whether suitable accounting policies
had been adopted, whether management had made
appropriate estimates and judgements and whether
disclosures were in compliance with the financial reporting
standards. The Audit Committee:
• Reviewed and recommended to the Board for
approval the audited financial results of the Company
and its subsidiaries (collectively, the “Group”) for
the year ended March 31, 2013 together with
the related annual results announcement and the
annual report incorporating the directors’ report and
corporate governance report after discussion with the
management and external auditor;
• Reviewed and recommended to the Board for
approval the unaudited interim financial results of
the Group for the six months ended September
30, 2013 together with the related interim results
announcement and the interim report after discussion
with the management and external auditor;
• Reviewed and recommended to the Board for
approval the unaudited financial results of the Group
for the three months ended June 30, 2013 and
for the nine months ended December 31, 2013
together with its respective results announcements
after discussion with the management and external
auditor;
Financial Reporting