Bank of Montreal 2008 Annual Report Download - page 107

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,
2008 and 2007 and the results of its operations and
its cash flows for each of the years in the three-year period ended
October 31, 2008 in accordance with Canadian generally accepted
accounting principles.
Chartered Accountants, Licensed Public Accountants
Toronto, Canada
November 25, 2008
Shareholders’ Auditors’ Reports
BMO Financial Group 191st Annual Report 2008 | 103
TotheShareholdersofBankofMontreal
We have audited the consolidated balance sheets of Bank of Montreal
(the “Bank”) as at October 31, 2008 and 2007 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, 2008. 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, 2008, 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 72 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
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 reason-
able 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 pro-
cedures may deteriorate.
In our opinion, the Bank maintained, in all material respects,
effective internal control over financial reporting as of October 31, 2008,
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, 2008 in accordance with Canadian generally
accepted auditing standards and the standards of the Public Company
Accounting Oversight Board (United States). Our report dated
November 25, 2008 expressed an unqualified opinion on those
consolidated financial statements.
Chartered Accountants, Licensed Public Accountants
Toronto, Canada
November 25, 2008