Bose Construction Inc. makes custom homes for consumers in the Vernon, B.C., area. Customers will choose the design, materials, and finishing, which are then written into a contract. Included in the contract are details of construction deadlines, invoicing and payment (or construction draws), frequency, and other terms. Under normal circumstances, the title of the house is transferred to the customer when the occupancy permit is issued.

At year end, Bose has a number of projects that are in process; they use the proportion of costs incurred to total estimated costs (i.e., cost to cost) to calculate the percentage completion.

Question 1: what is the risk for the financial statement?

Question 2: what is the account and assertion thats impacted?

Question 3: what is the procedure to perform?