We consider the bilocal conductivity tensor, the two-probe conductance and its fluctuations for a disordered phase-coherent two-dimensional system of non-interacting electrons in the presence of a magnetic field, including correctly the edge effects. Analytical results are obtained by perturbation theory in the limit $\sigma_{xx} \gg 1$. For mesoscopic systems the conduction process is dominated by diffusion but we show that, due to the lack of time-reversal symmetry, the boundary condition for diffusion is altered at the reflecting edges. Instead of the usual condition, that the derivative along the direction normal to the wall of the diffusing variable vanishes, the derivative at the Hall angle to the normal vanishes. We demonstrate the origin of this boundary condition from different starting points, using (i) a simplified Chalker-Coddington network model, (ii) the standard diagrammatic perturbation expansion, and (iii) the nonlinear sigma-model with the topological term, thus establishing connections between the different approaches. Further boundary effects are found in quantum interference phenomena. We evaluate the mean bilocal conductivity tensor $\sigma_{\mu\nu}(r,r')$, and the mean and variance of the conductance, to leading order in $1/\sigma_{xx}$ and to order $(\sigma_{xy}/\sigma_{xx})^2$, and find that the variance of the conductance increases with the Hall ratio. Thus the conductance fluctuations are no longer simply described by the unitary universality class of the $\sigma_{xy}=0$ case, but instead there is a one-parameter family of probability distributions. In the quasi-one-dimensional limit, the usual universal result for the conductance fluctuations of the unitary ensemble is recovered, in contrast to results of previous authors. Also, a long discussion of current conservation.