What records must the Contractor maintain for audit purposes?

The requirement for the Contractor to maintain accurate books and accounting records relating to its services is critical for several reasons, particularly in the context of audit compliance and transparency. Accurate records ensure that all financial transactions are properly documented, which provides a clear trail of how funds are utilized and services are rendered.

This level of documentation allows for effective monitoring and evaluation of the Contractor's performance. Additionally, keeping well-organized accounting records helps in resolving any discrepancies that may arise during audits and facilitates compliance with legal and contractual obligations. It is a fundamental practice that supports accountability and promotes trust between the Contractor and oversight entities, such as government agencies or stakeholders involved in the housing projects.

The other options do not fulfill the necessary criteria for audit readiness. For instance, maintaining only financial statements would lack the detail required to fully account for the services provided. Informal logs may not meet the standards of accuracy and reliability, which are essential for audits. Lastly, having no records at all would not be acceptable as it would undermine the integrity of the Contractor's operations and leave them unaccountable.