Second set of books

The second set of books is an old accounting trick used to hide criminal activity. One set of books describes the way the money should be handled, and is open and available for review upon request. The second set of books is hidden, and is used by the criminal to keep track of how the money is actually handled. Using this system a criminal can easily make money disappear, whether it be for tax evasion purposes or if he is stealing from his partners or employer.

The term "second set of books" has also been applied to the American legal system, where the Constitution, legal code, and common law comprise the first set and the bureaucrat-generated regulations, policies, and guidelines dictate how the country is actually run.