In what way can the trust fund for preneed services be audited?

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Prepare for the Texas Funeral Prearrangement License Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The trust fund for preneed services can be audited through routine governmental oversight because this approach ensures that funds are managed in compliance with applicable laws and regulations. Government oversight serves to protect consumers and ensure the integrity of the pre-need service industry. It establishes a systematic way of reviewing financial practices to verify that the funds are being managed appropriately, safeguarding clients' investments for future funeral services.

While engaging an independent auditor might seem beneficial for transparency, it isn't a standard requirement outlined by regulatory bodies. Regulatory agencies typically implement routine audits to ensure adherence to laws that govern funeral trusts, making option B the most effective and consistent means of audit process.

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