Bank of Montreal 2010 Annual Report Download - page 111

BMO Financial Group 193rd Annual Report 2010 109
Shareholders’ Auditors’ Reports
To the Shareholders of Bank of Montreal
We have audited the consolidated balance sheets of Bank of Montreal
(the “bank”) as at October 31, 2010 and 2009 and the consolidated
statements of income, comprehensive income, changes in shareholders’
equity and cash flows for each of the years in the three-year period
ended October 31, 2010. These financial statements are the responsibility
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 Canadian generally
accepted auditing standards and the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform an audit to obtain reasonable assurance
whether the financial statements 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
To the Shareholders and Board of Directors
of Bank of Montreal
We have audited Bank of Montreal’s (the “bank”) internal control
over financial reporting as of October 31, 2010, based on the criteria
established in Internal Control – Integrated Framework, issued by
the Committee of Sponsoring Organizations of the Treadway Commission
(“COSO”). The bank’s management is responsible for maintaining
effective internal control over financial reporting and for its assess-
ment of the effectiveness of internal control over financial reporting,
included on page 74 of Management’s Discussion and Analysis.
Our responsibility is to express an opinion on the bank’s internal
control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of
the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform an audit to obtain
reasonable assurance whether effective internal control over financial
reporting was maintained in all material respects. Our audit included
obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audit also included performing such
other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to
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, 2010 and 2009 and the results of its operations and
its cash flows for each of the years in the three-year period ended
October 31, 2010 in accordance with Canadian generally accepted
accounting principles.
Chartered Accountants, Licensed Public Accountants
Toronto, Canada
December 7, 2010
permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the company’s assets that could have
a material effect on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
In our opinion, the bank maintained, in all material respects,
effective internal control over financial reporting as of October 31, 2010,
based on the criteria established in Internal Control – Integrated
Framework issued by COSO.
We also have conducted audits of the consolidated financial
statements of the bank for each of the years in the three-year period
ended October 31, 2010 in accordance with Canadian generally
accepted auditing standards and the standards of the Public Company
Accounting Oversight Board (United States). Our report dated
December 7, 2010 expressed an unqualified opinion on those consolidated
financial statements.
Chartered Accountants, Licensed Public Accountants
Toronto, Canada
December 7, 2010