The accompanying consolidated financial statements
of Royal Bank of Canada were prepared by management, which is
responsible for the integrity and fairness of the information
presented, including the many amounts that must of necessity
be based on estimates and judgments. These consolidated financial
statements were prepared in accordance with accounting principles
generally accepted in the United States of America. Financial
information appearing throughout this Annual Report is consistent
with these consolidated financial statements. Management has
also prepared consolidated financial statements for Royal Bank
of Canada in accordance with Canadian generally accepted accounting
principles pursuant to Subsection 308 of the Bank
which states that, except as otherwise specified by the Superintendent
of Financial Institutions Canada, the financial statements are
to be prepared in accordance with Canadian generally accepted
accounting principles, and these consolidated financial statements
have also been provided to shareholders.
In discharging its responsibility for the integrity and fairness
of the consolidated financial statements and for the accounting
systems from which they are derived, management maintains the
of internal controls designed to ensure that transactions are
authorized, assets are safeguarded and proper records are maintained.
controls include quality standards in hiring and training of
employees, policies and procedures manuals, a corporate code
of conduct and accountability for performance within appropriate
and well-defined areas of responsibility.
The system of internal controls is further supported by a compliance
function, which is designed to ensure that we and our employees
comply with securities legislation and conflict of interest rules,
an internal audit staff, which conducts periodic audits of
all aspects of our operations.
The Board of Directors oversees management’s responsibilities
for financial reporting through an Audit Committee, which is
composed entirely of directors who are neither officers nor employees
of the bank. This Committee reviews the consolidated financial
statements of the bank and recommends them to the board for approval.
Other key responsibilities of the Audit Committee include reviewing
our existing internal control procedures and planned revisions
to those procedures, and advising the directors on auditing matters
and financial reporting issues. Our Compliance Officer and Chief
Internal Auditor have full and unrestricted access to the Audit
At least once a year, the Superintendent of Financial Institutions
Canada makes such examination and enquiry into the affairs of
bank as deemed necessary to ensure that the provisions of the
Bank Act (Canada), having reference to the safety of the depositors
and shareholders of the bank, are being duly observed and that
the bank is in sound financial condition.
Deloitte & Touche LLP, independent auditors appointed by
the shareholders of the bank upon the recommendation of the Audit
Committee, have performed an independent audit of the consolidated
financial statements and their report follows. The shareholders’ auditors
have full and unrestricted access to the Audit Committee to discuss
their audit and related findings.
Gordon M. Nixon
President and Chief Executive Officer
Janice R. Fukakusa
Chief Financial Officer
Toronto, December 20, 2004