TD Bank 2006 Annual Report Download - page 75

TD BANK FINANCIAL GROUP ANNUAL REPORT 2006 Financial Results 71
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,
2006 using the framework found in Internal Control –
Integrated Frameworkissued by the Committee of
Sponsoring Organizations of the Treadway Commission.
Based upon this assessment, management has concluded
that as at October 31, 2006 the Bank’s internal control over
financial reporting is effective.
The Bank’sBoardof 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 management’s assessment of the effectiveness of
the Bank’s internal control over financial reporting as at
October 31, 2006 in addition to auditing the Bank’s
Consolidated Financial Statements as of the same date.
Their report, which expressed an unqualified opinion on
management’s assessment, can be found on page 72. 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 Executive Vice President and
Chief Executive Officer Chief Financial Officer
Toronto, Canada
December 7, 2006
FINANCIAL RESULTS
Consolidated Financial Statements
INDEPENDENT AUDITORS’ REPORT TO SHAREHOLDERS
Wehave audited the Consolidated Balance Sheet of
The Toronto-Dominion Bank as at October 31, 2006 and
the Consolidated Statements of Income, Changes in
Shareholders’ Equity and Cash Flows for the year 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 audit.
Weconducted our audit 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 audit
provides 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, 2006 and the results of its
operations and its cash flows for the year then ended in
accordance with Canadian generally accepted accounting
principles.
Wehave 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, 2006 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 December 7, 2006
expressed an unqualified opinion thereon.
The consolidated financial statements for the years ended
October 31, 2005 and 2004 wereaudited by Ernst and
Young LLP and PricewaterhouseCoopers LLP who expressed
an opinion thereon without reservation in the report dated
November 22, 2005.
Ernst & Young LLP
Chartered Accountants
Toronto, Canada
December 7, 2006