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I bet lots of people think C is correct, because 5 years of record retention is not recommended
But the answer is:
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In this case, 5 years of record retention is acceptable and consistent with Code of Standard of “recommended 7 years of record retention”??? Any ideas? thanks. The errata does not include this question
The question is ambiguous because we don’t know whether Westlake Fund maintained older-than-5-years records in electronic form or not. If yes, A is the correct answer. If no, you should choose C.
7 years is a recommendation, not a requirement. So you can be consistent with the Standards even if you retain for less than 7 years.
Furthermore, as we determined in another thread on this topic, the curriculum clearly states that you should apply the 7-year rule in the absence of corporate or regulatory guidance. If you have such guidance, the curriculum is silent.