TD Bank 2011 Annual Report Download - page 86

TD BANK GROUP ANNUAL REPORT 2011 FINANCIAL RESULTS84
reviews the Consolidated Financial Statements 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 shareholders 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 profes-
sional 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 depositors, 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, 2011 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 the following pages 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 there from, such as, comments they may
have on the fairness of financial reporting and the adequacy of
internal controls.
W. Edmund Clark Colleen M. Johnston
Group President and Group Head Finance and
Chief Executive Officer Chief Financial Officer
Toronto, Canada
November 30, 2011
consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances. An audit also includes exam-
ining, on a test basis, evidence supporting the amounts and disclosures
in the consolidated financial statements, evaluating the appropriateness
of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained in our audits
is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in
all material respects, the financial position of The Toronto-Dominion
Bank as at October 31, 2011 and 2010, and the results of its opera-
tions and its cash flows for each of the years in the three-year period
ended October 31, 2011, in accordance with Canadian generally
accepted accounting principles.
Other matter
We have also audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), The Toronto-
Dominion Bank’s internal control over financial reporting as of October 31,
2011, 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 30, 2011 expressed
an unqualified opinion on The Toronto-Dominion Bank’s internal control
over financial reporting.
Ernst & Young LLP
Chartered Accountants
Licensed Public Accountants
Toronto, Canada
November 30, 2011
FINANCIAL RESULTS
Consolidated Financial Statements
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL INFORMATION
The management of The Toronto-Dominion Bank and its subsidiaries
(the “Bank”) is responsible for the integrity, consistency, objectivity
and reliability of the Consolidated Financial Statements of the Bank
and related financial information as presented. 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 reason-
able 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, 2011 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, 2011, 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 man -
agement’s responsibilities for financial reporting. The Audit Committee
INDEPENDENT AUDITORS’ REPORTS OF REGISTERED PUBLIC
ACCOUTING FIRM TO SHAREHOLDERS
Report on Financial Statements
We have audited the accompanying consolidated financial statements
of The Toronto-Dominion Bank, which comprise the Consolidated
Balance Sheet as at October 31, 2011 and 2010, and the Consolidated
Statements of Income, Changes in Shareholders’ Equity, Comprehensive
Income and Cash Flows for each of the years in the three-year period
ended October 31, 2011, and a summary of significant accounting
policies and other explanatory information.
Management’s responsibility for the consolidated
financial statements
Management is responsible for the preparation and fair presentation of
these consolidated financial statements in accordance with Canadian
generally accepted accounting principles, and for such internal control
as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstate-
ment, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these consolidated finan-
cial statements based on our audits. We conducted our audits in accor-
dance with Canadian generally accepted auditing standards and the
standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we comply with ethical require-
ments and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated financial state-
ments. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error.
In making those risk assessments, the auditors consider internal control
relevant to the entity’s preparation and fair presentation of the