What can result from not maintaining records such as contracts and receipts for the required time?

Maintaining accurate and comprehensive records, such as contracts and receipts, is crucial for compliance with regulatory requirements and for effective business management. When these records are not kept for the required duration, it can lead to several repercussions, including possible fines or disciplinary action from regulatory bodies. These consequences arise because records are often necessary to demonstrate compliance with laws and regulations that govern business operations.

In the context of contractor management, failing to produce these records when requested during audits or inspections can result in penalties, which may involve financial fines or administrative sanctions against the business. Proper record-keeping is a fundamental part of risk management and helps to protect the business's interests by ensuring it is prepared for any legal or regulatory inquiries.