Consider the following financial statement line items reported from three subsidiary locations of a manufacturer:

Assume the following exchange rates:

1 U.S. dollar \(=0.57\) British pounds 1 U.S. dollar \(=1.15\) Canadian dollars 1 British pound \(=2.016\) Canadian dollars Explain the audit issues that arise in the translation, aggregation, and consolidation of the three subsidiaries.

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Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets British Manufacturing Operation 15 million British pounds 225 million British pounds 450 million British pounds 40 million British pounds 730 million British pounds Canadian Manufacturing Operation 30 million Canadian dollars 190 million Canadian dollars 500 million Canadian dollars 20 million Canadian dollars 740 million Canadian dollars U.S. Manufacturing Operation 60 million U.S. dollars 180 million U.S. dollars 565 million U.S. dollars 65 million U.S. dollars 870 million U.S. dollars