Bank of Montreal 2012 Annual Report Download - page 119

Statement of Management’s Responsibility
for Financial Information
Management of Bank of Montreal (the “bank”) is responsible for
preparation and presentation of the annual consolidated financial
statements, Management’s Discussion and Analysis (“MD&A”) and all
other information in the Annual Report.
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (“IFRS”) and
the applicable requirements of the Securities and Exchange Commission
(“SEC”) in the United States. The financial statements also comply with
the provisions of the Bank Act and related regulations, including
interpretations of IFRS by our regulator, the Office of the Superintendent
of Financial Institutions Canada.
The MD&A has been prepared in accordance with the requirements of
securities regulators, including National Instrument 51-102 of the Canadian
Securities Administrators (“CSA”) as well as Item 303 of Regulation S-K
under the United States Securities Act of 1933 and the Securities Exchange
Act of 1934, and their related published requirements.
The consolidated financial statements and information in the MD&A
necessarily include amounts based on informed judgments and
estimates of the expected effects of current events and transactions
with appropriate consideration to materiality. In addition, in preparing
the financial information we must interpret the requirements described
above, make determinations as to the relevancy of information to be
included, and make estimates and assumptions that affect reported
information. The MD&A also includes information regarding the 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 events and circumstances in the future may not
occur as expected.
The financial information presented in the bank’s Annual Report is
consistent with that in the consolidated financial statements.
In meeting our responsibility for the reliability and timeliness of
financial information, we maintain and rely on a comprehensive system
of internal controls and internal audit, including organizational and
procedural controls, disclosure controls and procedures, and internal
control over financial reporting. Our system of internal controls 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; escalation of relevant information for decisions
regarding public disclosure; careful selection and training of personnel;
and accounting policies that we regularly update. This structure ensures
appropriate internal controls 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 regulatory requirements.
As at October 31, 2012, we, as the bank’s Chief Executive Officer
and Chief Financial Officer, have determined that the bank’s internal
control over financial reporting is effective. We have certified Bank of
Montreal’s annual filings with the CSA and with the SEC pursuant to
National Instrument 52-109 and the Securities Exchange Act of 1934.
In order to provide their audit opinions on our consolidated financial
statements and on the bank’s internal control over financial reporting,
the Shareholders’ Auditors audit our system of internal controls and
conduct work to the extent that they consider appropriate. Their audit
opinion on the bank’s internal control over financial reporting is set forth
on page 118.
The Board of Directors, based on recommendations from its Audit and
Conduct Review Committee, reviews and approves the financial
information contained in the Annual Report, including the MD&A. The
Board of Directors and its relevant committees oversee management’s
responsibilities for the preparation and presentation of financial
information, maintenance of appropriate internal controls, compliance
with legal and regulatory requirements, management and control of major
risk areas, and assessment of significant and related party transactions.
The Audit and Conduct Review Committee, which is comprised
entirely of independent directors, is also responsible for selecting the
Shareholders’ Auditors and reviewing the qualifications, independence
and performance of both the Shareholders’ Auditors and internal audit.
The Shareholders’ Auditors and the bank’s Chief Auditor have full and
free access to the Board of Directors, its Audit and Conduct Review
Committee and other relevant committees to discuss audit, financial
reporting and related matters.
The Office of the Superintendent of Financial Institutions Canada
conducts examinations and inquiries into the affairs of the bank as are
deemed necessary to ensure that the provisions of the Bank Act, with
respect to the safety of the depositors, are being duly observed and that
the bank is in sound financial condition.
William A. Downe Thomas E. Flynn Toronto, Canada
President and Chief Executive Officer Executive Vice-President and Chief Financial Officer December 4, 2012
116 BMO Financial Group 195th Annual Report 2012