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Practice Of Real EstateLicense LawMEDIUM

A Gastonia broker is training a new associate on record retention, transaction files, and trust records. Which statement best applies under current North Carolina law?

Correct Answer

C) An audit trail requires records that allow a reviewer to follow money and documents from receipt through deposit, disbursement, and closing.

An audit trail requires records that allow a reviewer to follow money and documents from receipt through deposit, disbursement, and closing.

Answer Options
A
Unsigned notes in a desk drawer satisfy the audit trail requirement under current North Carolina rules
B
An audit trail exists so long as total bank balances look plausible under current North Carolina rules
C
An audit trail requires records that allow a reviewer to follow money and documents from receipt through deposit, disbursement, and closing.
D
A single annual summary is enough to show all trust activity under current North Carolina rules

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Related Topics & Key Terms

Key Terms:

audit trail componentstrust account journalledger cardsreceipt to disbursementNCREC recordkeeping standard
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