Bank of Montreal 1997 Annual Report Download - page 94

Bank of Montreal 180th Annual Report 199788
Statement of Management’s Responsibility for Financial Information
The Bank’s management is responsible for presentation and
preparation of the annual consolidated financial statements,
Management Analysis of Operations (“MAO”) and all other infor-
mation in the Annual Report.
The consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles,
which in our circumstances are consistent with accounting princi-
ples generally accepted in the United States. The financial statements
also comply with the provisions of the Bank Act and related regula-
tions, including the accounting requirements of the Superintendent
of Financial Institutions Canada, as well as the requirements of the
Securities and Exchange Commission in the United States.
The MAO has been prepared in accordance with the require-
ments of securities regulators including National Policy 47 of the
Canadian Securities Administrators as well as Item 303 of
Regulation S-K of the Securities Exchange Act, and their
related
published requirements.
The consolidated financial statements and information in the
MAO necessarily include amounts based on informed judgements
and estimates of the expected effects of current events and trans-
actions with appropriate consideration to materiality. In addition, in
preparing the financial information we must interpret the require-
ments described above, make determinations as to the relevancy of
information to be included, and make estimates and assumptions
that affect reported information. The MAO also includes information
regarding the estimated impact of current transactions and events,
sources of liquidity and capital resources, operating trends, risks and
uncertainties. Actual results in the future may differ materially from
our present assessment of this information because future events and
circumstances may not occur as expected.
The financial information presented elsewhere in the Annual
Report is consistent with that in the consolidated financial statements.
In meeting our responsibility for the reliability of financial infor-
mation, we maintain and rely on a comprehensive system of internal
control and audit including organizational and procedural controls
and internal accounting controls. Our system of internal control
includes written communication of our policies and procedures
governing corporate conduct and risk management; comprehensive
business planning; effective segregation of duties; delegation of
authority and personal accountability; careful selection and training
of personnel; and sound and conservative accounting policies which
we regularly update. This structure ensures appropriate internal
control over transactions, assets and records. We also regularly audit
internal controls. These controls and audits are designed to provide
us with reasonable assurance that the financial records are reliable
for preparing financial statements and other financial information,
assets are safeguarded against unauthorized use or disposition,
liabilities are recognized, and we are in compliance with all regula-
tory requirements. The Shareholders’ Auditors review our system
of internal control and conduct their work to the extent that
they consider appropriate in order to provide their opinion on our
consolidated financial statements.
The Board of Directors is responsible for reviewing and approving
the financial information contained in the Annual Report, including
the MAO, and overseeing management’s responsibilities for the
presentation and preparation of financial information, maintenance
of appropriate internal controls, management and control of major
risk areas and assessment of significant and related party transactions.
The Board delegates these responsibilities to its Audit, Risk Review
and Conduct Review Committees. These committees are composed
solely of directors who are not officers or employees of the Bank.
The Shareholders’Auditors and the Bank’s Chief Auditor have
full and free access to the Board of Directors and its committees to
discuss audit, financial reporting and related matters.
Shareholders’ Auditors’ Report
Matthew W. Barrett F. Anthony Comper Robert B. Wells, C.A.
Chairman and President and Executive Vice-President and
Chief Executive Officer Chief Operating Officer Chief Financial Officer
Coopers & Lybrand KPMG Canada
Chartered Accountants Chartered Accountants November 25, 1997
To the Shareholders of Bank of Montreal
We have audited the consolidated balance sheets of Bank of Montreal
as at October 31, 1997 and 1996 and the related consolidated state-
ments of income, changes in shareholders’ equity and changes in
financial position for each of the years in the three-year period
ended October 31, 1997. These financial statements are the respon-
sibility of the Bank’s management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
an audit to obtain reasonable assurance whether the financial state-
ments are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial
statement presentation.
In our opinion, these consolidated financial statements present
fairly, in all material respects, the financial position of the Bank
as at October 31, 1997 and 1996 and the results of its operations and
the changes in its financial position for each of the years in the
three-year period ended October 31, 1997 in accordance with generally
accepted accounting principles including the accounting require-
ments of the Superintendent of Financial Institutions Canada.