TD Bank 2009 Annual Report Download - page 91

TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 FINANCIAL RESULTS 87
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL INFORMATION
The management of The Toronto-Dominion Bank (the “Bank”)
is responsible for the integrity, consistency, objectivity and relia-
bility of the Consolidated Financial Statements of the 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, 2009
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, 2009 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 financial reporting.
The Audit Committee reviews the Consolidated Financial State-
ments and recommends them to the Board for approval. Other
responsibilities of the Audit Committee include monitoring the
Bank’s system of internal controls over the financial reporting
process and making recommendations to the Board and share-
holders regarding the appointment of the external auditor.
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 Office of 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 deposi-
tors, are being duly observed and that the Bank is in sound
financial condition.
Ernst & Young LLP, the independent auditors appointed by the
shareholders of the Bank, have audited the effectiveness of the
Bank’s internal control over financial reporting as at October 31,
2009 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 87 to 88 of the
Consolidated Financial Statements. 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
December 2, 2009
INDEPENDENT AUDITORS’ REPORTS TO SHAREHOLDERS
Report on Financial Statements
We have audited the Consolidated Balance Sheet of The
Toronto-Dominion Bank as at October 31, 2009 and 2008 and
the Consolidated Statements of Income, Changes in Shareholders’
Equity, Comprehensive Income and Cash Flows (collectively
the “Consolidated Financial Statements”) for the years ended
October 31, 2009, 2008 and 2007. These financial statements
are the responsibility of the Bank’s management. Our responsi-
bility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with Canadian gener-
ally 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 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, 2009 and 2008 and the results of its operations
and its cash flows for the years ended October 31, 2009, 2008
and 2007 in accordance with Canadian generally accepted
accounting principles.
As explained in Note 1 to the Consolidated Financial
Statements, effective November 1, 2008, the Bank adopted
amendments to Canadian Institute of Chartered Accountants
(“CICA”) handbook section 3855 “Financial Instruments –
Recognition and Measurement”related to impairment of finan-
cial assets. In addition, the Bank adopted amendments to CICA
handbook section 3855 “Financial Instruments – Recognition
and Measurement” effective August 1, 2008, which permitted
reclassification of certain securities out of held for trading and
available-for-sale categories under specified circumstances.
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, 2009
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 2,
2009 expressed an unqualified opinion thereon.
Ernst & Young LLP
Chartered Accountants
Licensed Public Accountants
Toronto, Canada
December 2, 2009
FINANCIAL RESULTS
Consolidated Financial Statements