Which factor can lead to additional scrutiny during the trust fund examination?

The factor that can lead to additional scrutiny during the trust fund examination is a change in management. When there is a change in management within a funeral home or similar establishment, it can raise concerns about the continuity of operations and adherence to established protocols. New management may have different practices, philosophies, or experiences, which could potentially impact the handling of trust funds and compliance with fiduciary responsibilities.

Furthermore, the transition period often poses risks, as new leaders must familiarize themselves with existing systems and may inadvertently alter processes that were previously in place. Regulatory bodies recognize that management changes can signify a need for closer examination, as these transitions might affect the integrity of trust funds intended to secure pre-need funeral services.

The other factors could also lead to scrutiny but in different contexts. Significant customer complaints might indicate operational issues but do not necessarily pertain directly to the management of trust funds. Changes in state regulations would require adherence but do not inherently trigger additional scrutiny unless related to compliance failures observed in management practices. Higher-than-average fund withdrawals might suggest potential issues with liquidity or management of funds, but again, it is the change in management that typically signals a broader need for oversight during transitions.