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The correct response is grounded in the principle of preserving records when there is an impending or ongoing litigation or audit. When such legal or procedural actions are initiated, it is essential for the agency to retain all relevant records to ensure compliance and to provide necessary documentation that may be requested or needed in legal or financial reviews. Destruction of pertinent records in these circumstances could lead to legal repercussions or hinder the audit process, making it critical to maintain those records until the matter is resolved.

In contrast, records considered outdated, or those for which an agency no longer has a requirement, can typically be destroyed because they no longer serve a significant purpose. Similarly, if a record's importance is deemed questionable, it doesn't necessarily necessitate retention. However, the involvement of litigation or an audit unequivocally shifts the priority to record preservation, highlighting the requirement to keep such documents intact for scrutiny.