Record retention is a must. The recommended is 7 years. So if I retain records for 1 year, I am not following recommended procedures, but I am keeping records, so this is not a violation. But if I am not keeping any records at all (i.e. trashing all docs after I’m done with them), then I am violating the codes. The reason is not because I am not following the 7 years, but because I am simply ignoring the Standard that says to keep records. True?
All i can remember about record retention is that you have to keep records for 7 years minimum hard copy or on PC i believe. Although considering my HD just crashed I’d recommend making backups 
If your company has not been around for seven years but you have kept records since inception you are fine. If you started keeping records several years ago (<7) to comply with the standard make sure you do not trash any prior to seven years.
I don’t think anybody quite has gotten this one right yet… In my understanding it is something along the lines of reccomended 7 yrs… and local law overrides the CFAI’s guidline