2005-06-01_REPORT - M1977378

• Permit No: M1977378
• IBM Index Class Name: Report
• Doc Date: 6/1/2005
• Doc Name: Annual Fee/Report Notice
• From: sunnyside gold corp
• To: dmg
• Media Type: D
• Archive: No

> CONSOLIDATED FINANCIAL STATEMENTS
U
Management's Responsibility for Financial Information
The management of The Bank of Nova Scotia (the Bank) k respon-
sible for the integrity and fair presentation of the financial informa-
tion contained in this Annual Report. The consolidated financial
statements have been prepared in accordance with Canadian
generally accepted accounting principles. The consolidated financial
statements also comply with the accounting requirements of the
Bank Act.
The consolidated financial statements, where necessary, include
amounts which are based on the best estimates and judgement of
management. Financial information presented ehewhere in this
Annual Report is consistent with that shown in the consolidated
financial statements.
Management has allays recognized the importance of the Bank
maintaining and reinforcing the highest possible standards of
conduct in all of its actions, including the preparation and dissemi-
nation of statements fairly presenting the financial condition of the
Bank. In this regard, management has devebped and maintains a
system of accounting and reporting which provides for the n«es-
sary internal controls to eMUre that transactions are propedy
authorized and recorded, assets are safeguarded against unautho-
rued use or disposition, and liabilities are recognized. The system is
augmented by written policies and pr«edures, the careful set«tion
and training of qualified staff, the establishment of organizahonal
structures providing an appropriate and well-defined division of
responsibilities, and the communication of policies and guidelines of
business conduct throughout the Bank.
The system of internal controls is further supported by a profes-
sional xaff of internal auditors who conduct periodic audits of all
aspects of the BankY operations. As well, the Bank's Chief Auditor
has full and free access to, and meets periodically with, the Audit
and Conduct Review Committee of the Board of Directors. In
addition, the Bank's compliance function maintains policies, pr«ed-
dures and programs directed at ensuring compliance with regulatory
requirements, including conflict of interest rules.
The Superintendent of Financial Institutions Canada examines
and enquires into the business and affairs of the Bank, to the extent
deemed necessary, to satisfy himself that the provaions of the Bank
Act, having reference to the safety of the interests of depositors,
creditors and shareholders of the Bank, are being duly observed and
that the Bank is in a sound financial condition.
The Audit and Conduct Review Committee, composed entirely
of outside directors, reviews the consolidated financial statements
with both management and the independent auditors before such
statements are approved by the Board of Direttors and submitted to
the shareholders of the Bank.
The Audit and Conduct Review Committee reviews and reports
their findings to the Board of Directors on all related party transac-
tions that may have a material impact on the Bank.
KPMG LLP and PricewaterhouseCoopers LLP, the independent
auditors appointed by the shareholders of the Bank, have audited
the consolidated financial statements of the Bank in accordance with
Canadan generally accepted auditing standards and have expnssed
their opinon upon completion of such audit in the folbwing report
to the shareholders. In order to provide their opinion on these
consolidated financial statements, the Shareholders' Auditors review
the system of internal controls and conduct their wrork to the extent
that they consider appropriate. The Shareholders' Auditors have full
and free access to, and meet periodically with, the Audit and
Conduct Review Committee to dixuss their audit and findings as to
the integrity of the BankY accounting, financial reporting and
related matters.
Rick Waugh
President and Chief Executive Officer
Toronto, November 30, 2004
Shareholders' Auditors' Report
To the Shareholders of The Bank of Nova Scotia
We have audited the Consolidated Balance Sheets of The Bank of
Nova Scotia as at October 32, 2004 and 2003, and [he Consoli-
dated Statements of Income, Changes in Shareholders' Equity and
Cash Flows for each of the years in the three-year period ended
October 31, 2004. These financial statements are the responsibility
of the Bank's management. Our responsibility K to express an
opinion on these fnancial statements based on our audits.
We conducted our audits in accordance with Canadian gener-
ally 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
Sarabjit 5. Manrvah
Senior Executive Vice-President
and Chief Financial Officer
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 flank as at
October 31, 2004 and 2003, and the results of its operafions and
its cash flows for each of the years in the three-year period ended
October 31, 2004 in accordance with Canadian generaly accepted
accounting principles.
KPMG LLP PricewaterhouseCoopers LLP
• Chartered Attountants Chartered Aaountants
84 2004 Scotiabank Annual Report
Toronto, November 30, 2004