Common use of Subsequent Audit Clause in Contracts

Subsequent Audit. a. If the Permitted Entity is subject to regulatory enforcement and oversight actions under section 505(a)(1)-(7) of GLBA and has no Type I or Type II noncompliance violations as defined in section IX A, below, in the most recent audit, will be subject to an audit once every 5 years after the first audit; b. If the Permitted Entity is not subject to regulatory enforcement or oversight actions under section 505(a)(1)-(7) of GLBA, or has any Type I or Type II noncompliance violations, will be subject to an audit every year; c. The Permitted Entity and the Financial Institutions it services, if any, are subject to audits at SSA’s discretion at any time.