Lenovo 2014 Annual Report Download - page 75

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2013/14 Annual Report Lenovo Group Limited
• Discussed the yearly internal audit plan of the Group
to ensure adequate scope, coverage over the
activities of the Group and the resource requirements
of internal audit to carry out its functions and also
reviewed the results of the internal audit work
quarterly;
• Reviewed the effectiveness of the internal control
system (including the adequacy of resources, staff
qualification and experience, training programmes
and budget of the Group’s internal audit, accounting
and financial reporting function) operating in the
Group and reviewed the corrective actions taken by
the management;
• Reviewed the control issues of Group level
significance and specific control issues. The Audit
Committee was particularly concerned to understand
the potential impact on resources in those businesses
as they integrate and automate and standardise
processes and controls;
• Reviewed the enterprise risk management of the
Group including a summary of the work performed
in fiscal year 2012/13 and the plan for fiscal year
2013/14; assessed the risk universe and the high risk
items and reviewed the steps taken by management
to control these risks;
• Reviewed the management letter point status and
management system related to revenue recognition
and receivables, and reviewed the actions/processes
undertaken by the Group;
To discharge the responsibility of overseeing the Board’s
relationship with the external auditor and monitoring
the external auditor’s performance, objectivity and
independence and also the effectiveness of the audit
process, the Audit Committee:
• Reviewed and considered the external auditor’s
statutory audit scope for the fiscal year 2013/14,
including their plan and the terms of engagement,
and the letter of representation to be given by the
Board in respect of the financial year ended March
31, 2013;
External Audit
• Reviewed the results of the audit and the reports
submitted by external auditor, which summarised
matters arising from their audit on the Group during
the year ended March 31, 2014, together with
management’s responses and/or comments to the
findings;
• Assessed the external auditor’s independence and
objectivity including a review of the non-audit services
provided by the external auditor;
• Evaluated the performance of PwC and
recommended to the Board for approval the re-
appointment PwC as external auditor of the Group
for the year ended March 31, 2014;
During the fiscal year 2013/14, the Audit Committee also:
• Reviewed the continuing connected transactions as
set out in the directors’ report of 2012/13 annual
report of the Company and received the external
auditor’s confirmation letter on continuing connected
transactions of the Group;
• Received and reviewed the reports from General
Counsel regarding legal matters of the Group;
• Reviewed and discussed with management on
the financial positions of the Group following the
proposed acquisitions of the X86 Server hardware
and related maintenance services business of
International Business Machines Corporation and the
Motorola mobility 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 the IT recovery plan of the Group;
• Reviewed the tax matters for fiscal year 2013/14;
• Reviewed and approved the audit committee report
for the fiscal year 2012/13;
• Reviewed and approved the annual agenda of the
Audit Committee for the fiscal year 2013/14.
Others