Bank of Montreal 2003 Annual Report Download - page 73

BMO Financial Group 186th Annual Report 2003 69
BMO’s management is responsible for presentation and preparation
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 Canadian generally accepted accounting principles
(“GAAP”) and the requirements of the Securities and Exchange
Commission (“SEC”) in the United States, as applicable. The finan-
cial statements also comply with the provisions of the Bank Act
and related regulations, including interpretations of GAAP by our
regulator, the Superintendent of Financial Institutions Canada.
The MD&A has been prepared in accordance with the require-
ments of securities regulators including National Instrument 44-101
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
MD&A necessarily include amounts based on informed judgments
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 MD&A 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
information, we maintain and rely on a comprehensive system of
internal control and internal audit, including organizational and
F. Anthony Comper
Chairman and
Chief Executive Officer
Karen E. Maidment
Executive Vice-President
and Chief Financial Officer
Canada
November 25, 2003
KPMG LLP
Chartered Accountants
PricewaterhouseCoopers LLP
Chartered Accountants
Canada
November 25, 2003
To the Shareholders of Bank of Montreal
We have audited the consolidated balance sheets of Bank of Montreal
as at October 31, 2003 and 2002 and the related consolidated state-
ments of income, changes in shareholders’ equity and cash flow for
each of the years in the three-year period ended October 31, 2003.
These financial statements are the responsibility of the Bank’s man -
agement. 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. 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 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, 2003 and 2002 and the results of its operations and
its cash flow for each of the years in the three-year period ended
October 31, 2003 in accordance with Canadian generally accepted
accounting principles.
procedural controls and internal controls over financial reporting.
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 regulatory requirements.
We, as Bank of Montreal’s Chief Executive Officer and Chief
Financial Officer, will certify Bank of Montreal’s annual disclosure
document filed with the SEC (Form 40-F) as required by the United
States Sarbanes-Oxley Act.
In order to provide their opinion on our consolidated financial
statements, the Shareholders’ Auditors review our system of inter-
nal control and conduct their work to the extent that they consider
appropriate.
The Board of Directors, based on recommendations from its Audit
and Conduct Review Committees and its Risk Review Committee,
reviews and approves the financial information contained in the
Annual Report, including the MD&A, and oversees management’s
responsibilities for the presentation and preparation of financial
information, maintenance of appropriate internal controls, manage -
ment and control of major risk areas and assessment of significant
and related party transactions.
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.
Statement of Management’s Responsibility
for Financial Information
Shareholders’Auditors’ Report