Compliance Auditing & Self-Inspection Flashcards

When conducting a self-inspection of Forms 4473, which section should be checked to ensure the transferee certified that they are not a prohibited person?

Answer: Section B (Transferee Certification)

Section B of the Form 4473 contains the transferee's certification that all answers are true and that they are not a prohibited person under federal law.

A self-inspection reveals that an FFL employee conducted a transfer and recorded a 'Y' (yes) response to the prohibiting question about felony conviction. What should the FFL do?

Answer: Report the transfer to ATF as a potential violation and preserve all records

A 'yes' answer to a prohibiting question on Form 4473 means the transfer was to a prohibited person and must be reported to ATF immediately while preserving all records.

What information must be recorded in the bound book when a firearm is disposed of as a sale to a non-licensee?

Answer: The buyer's name, city and state, date of transfer, and Form 4473 transaction number

The A&D record disposition entry must include the transferee's name, city and state, date of transfer, and the Form 4473 transaction number.

During self-inspection, an FFL finds a Form 4473 where Box 18 (type of firearm) lists 'pistol' but the bound book records the item as a 'revolver.' Which document controls for regulatory purposes?

Answer: Both must be corrected to match the actual firearm's ATF classification

Both the bound book and Form 4473 must accurately reflect the firearm's actual ATF classification; discrepancies in both must be corrected.

An FFL's self-inspection shows a NICS denial was received but the firearm was still transferred. What is the FFL's reporting obligation?

Answer: Report the unlawful transfer to the ATF and local law enforcement immediately

Transferring a firearm after a NICS denial is a federal crime; the FFL must immediately notify ATF and cooperate with the investigation.

How frequently does ATF recommend that FFLs conduct internal self-inspections to maintain compliance readiness?

Answer: At least annually, or whenever significant inventory changes occur

ATF recommends FFLs perform self-inspections at least annually and after major business changes to proactively identify and correct compliance gaps.

Which of the following is an acceptable method for an FFL to store out-of-business records after surrendering a license?

Answer: Retain records personally for the required period and notify ATF of storage location

An out-of-business FFL must retain records for the required period, and upon surrender must notify ATF where those records will be kept.