he CFO let me choose one of CEM's contracts and related progress reports to review in more detail. During my review I noted the following: o The total contract value is $850,000 and it is for the construction and installation of a piece of equipment. The contract was signed by both parties on January 1, 2023, with an installation date of April 30, 2024. The contract calls for a payment of $25,000 upon signing with quarterly payments of $200,000 to be made on March 1, June 1, September 1, and December 31, 2023. The final payment of $25,000 is due on installation. o CEM's CFO indicated that CEM recognizes the payments as revenue when collected and expenses the costs related to the contract as incurred. CEM anticipates that the total cost to complete the work will be $700,000. The contract is non-cancellable and all payments are non-refundable. o Engineering time reports are completed and costs are tracked. o The file contained the contract and was based upon a standard-form contract that covers all aspects of the work de