TD Bank 2007 Annual Report Download - page 80

TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 Financial Results76
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL REPORTING
The Bank’s management is responsible for the integrity,
consistency, objectivity and reliability of the Consolidated
Financial Statements of The Toronto-Dominion Bank
and related financial information presented in this
Annual Report. Canadian generally accepted accounting
principles as well as the requirements of the Bank Act and
related regulations have been applied and management
has exercised its judgment and made best estimates
where appropriate.
The Bank’s accounting system and related internal
controls are designed, and supporting procedures
maintained, to provide reasonable assurance that financial
records are complete and accurate and that assets are
safeguarded against loss from unauthorized use or
disposition. These supporting procedures include the careful
selection and training of qualified staff, the establishment
of organizational structures providing a well-defined division
of responsibilities and accountability for performance, and
the communication of policies and guidelines of business
conduct throughout the Bank.
Management has assessed the effectiveness of the
Bank’s internal control over financial reporting as at
October 31, 2007 using the framework found in Internal
Control – Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission.
Based upon this assessment, management has concluded
that as at October 31, 2007 the Bank’s internal control
over financial reporting is effective.
The Bank’s Board of Directors, acting through the Audit
Committee which is composed entirely of independent
directors, oversees management’s responsibilities for
the financial reporting and internal control systems.
The Bank’s Chief Auditor, who has full and free access
to the Audit Committee, conducts an extensive program of
audits. This program supports the system of internal control
and is carried out by a professional staff of auditors.
The Superintendent of Financial Institutions Canada
makes such examination and enquiry into the affairs of
the Bank as deemed necessary to ensure that the provisions
of the Bank Act, having reference to the safety of the
depositors, are being duly observed and that the Bank is
in a sound financial condition.
Ernst & Young LLP, the shareholders’ auditors, have
audited the effectiveness of the Bank’s internal control
over financial reporting as at October 31, 2007 in addition
to auditing the Bank’s Consolidated Financial Statements
as of the same date. Their reports, which expressed an
unqualified opinion, can be found on pages 76 and 77.
Ernst & Young have full and free access to, and meet
periodically with, the Audit Committee to discuss their audit
and matters arising therefrom such as comments they may
have on the fairness of financial reporting and the adequacy
of internal controls.
W. Edmund Clark Colleen M. Johnston
President and Group Head Finance and
Chief Executive Officer Chief Financial Officer
Toronto, Canada
November 28, 2007
FINANCIAL RESULTS
Consolidated Financial Statements
INDEPENDENT AUDITORS’ REPORT TO SHAREHOLDERS
We have audited the Consolidated Balance Sheet of The
Toronto-Dominion Bank as at October 31, 2007 and 2006
and the Consolidated Statements of Income, Changes in
Shareholders’ Equity, Comprehensive Income and Cash
Flows for the years then ended. 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 (PCAOB). Those standards require that we plan and
perform an audit to obtain reasonable assurance about
whether the Consolidated 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 estimates
made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, these Consolidated Financial Statements
present fairly, in all material respects, the financial position
of the Bank as at October 31, 2007 and 2006 and the
results of its operations and its cash flows for the years then
ended in accordance with Canadian generally accepted
accounting principles.
As explained in Note 1 to the consolidated financial
statements, in 2007, The Toronto-Dominion Bank adopted
the requirements of the Canadian Institute of Chartered
Accountants (“CICA“) handbook sections 3855 “Financial
Instruments – Recognition and Measurement“, 3865
“Hedges“, 1530 “Comprehensive Income“, and 3251
“Equity“.
We have also audited, in accordance with the standards
of the PCAOB, the effectiveness of The Toronto-Dominion
Bank’s internal control over financial reporting as at October
31, 2007 based on the criteria established in Internal
Control – Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission
and our report dated November 28, 2007 expressed an
unqualified opinion thereon.
The consolidated financial statements for the year
ended October 31, 2005 were audited in accordance
with Canadian generally accepted auditing standards by
Ernst and Young LLP and PricewaterhouseCoopers LLP
who expressed an opinion thereon without reservation
in their report dated November 22, 2005.
Ernst & Young LLP
Chartered Accountants
Licensed Public Accountants
Toronto, Canada
November 28, 2007