Incomplete records refer to a situation in which an organization is not using double-entry bookkeeping. Instead, it is using a more informal accounting system, such as a single-entry system, to maintain a reduced amount of information about its financial results. Under a single-entry system, it is possible to maintain a cash-basis income statement, but not a balance sheet. Reasons for Incomplete Records-It is also possible that the managers of a business intend to maintain a double-entry bookkeeping system, but the underlying accounting records are incomplete. There are many reasons for this situation, including the following: Fraudulent behavior. Employees may deliberately obfuscate or never record certain transactions, so that they can abscond with company assets or record excessive levels of profitability. Inadequate systems. There may be an inadequate system of procedures and supporting controls in place, so that various business transactions are never recorded in the accounting system. Loss during transition. A company may not adequately protect its old records when moving to a new accounting system, and irretrievably loses some or all of the old records. Incomplete records refer to a condition wherein; an establishment is not practicing double-entry bookkeeping. Instead, it is practicing an unconventional accounting system, namely, a single-entry system, to sustain a decreased amount of data about its financial results. Under a single-entry system, it is reasonable to keep a cash-basis income statement, although not a balance sheet. It is also feasible that the administrators of a firm, resolve to maintain a double-entry bookkeeping system, but the accounting records are incomplete. Reasons for Incomplete Records: Fraudulent behavior: Employees may voluntarily confuse or nevermore record some transactions, that they can flee with the company assets or record extreme degrees of profitability. Inadequate systems: There may be an incomplete system of methods and helping authorities in place that different business transactions are not recorded in the accounting system. Loss during the transition: A company may not sufficiently shield its old records when moving to a new accounting system, and loses a few or all the old records.

John U

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