Tennessee Funeral Service Laws Rules & Regulations (LRR) Practice Exam

What can happen if a funeral establishment does not comply with the audit requirements?

1. Renewal of licenses may be granted

2. Licenses may be revoked or suspended

3. Establishment may face fines

4. Services may be offered at a discount

The correct answer is: Licenses may be revoked or suspended

If a funeral establishment does not comply with the audit requirements, one significant consequence is that licenses may be revoked or suspended. Compliance with audit requirements is critical because it ensures that the establishment adheres to established regulations and standards of service. Failure to comply raises serious concerns about the establishment's operational integrity and capability to provide services in accordance with the law. When a funeral establishment operates without fulfilling its audit obligations, it can lead to a lack of oversight, which may result in violations of laws governing the funeral profession. These serious breaches warrant drastic measures, such as revoking or suspending the establishment's license to operate. This approach ensures that high standards are maintained within the profession, protecting the public and ensuring that funeral services are delivered ethically and responsibly. While establishments may face other repercussions like fines, the most severe and immediate consequence of non-compliance with audits pertains to their licensing status, directly impacting their ability to operate legally.