Accounting records that are sufficient to show and explain an organization’s transactions. For a company, the Companies Act requires that these records should be able to disclose with reasonable accuracy, at any time, the financial position of the company and enable the directors to ensure that the balance sheet and profit and loss account comply with the statutory regulations. In particular, the accounting records shall contain entries of all money received and spent and a record of the assets and liabilities of the company. If goods are being bought and sold, stock records must also be sufficient. In forming an audit opinion an auditor performing a statutory audit under the Companies Act will consider whether proper accounting records have been kept and proper returns adequate for audit have been received from branches not visited. Furthermore, the auditor will consider whether the accounts are in agreement with the accounting records and returns. See also statutory books.