FFL Compliance Auditing & Self-Inspection 2 — Questions and Answers
Question 1: During a self-inspection, an FFL discovers that 12 bound book entries lack the required acquisition date. What is the most appropriate immediate corrective action?
- Destroy and re-enter all affected records from scratch
- Annotate each entry with the correct date and initial/date the correction (Correct answer)
- Leave the entries unchanged to avoid creating apparent alterations
- File an amended ATF Form 4473 for each transaction
Correct answer: Annotate each entry with the correct date and initial/date the correction
Bound book corrections must be made by lining through the error, entering correct information, and initialing and dating the correction — never erasing or obliterating.
Question 2: What is the maximum number of days an FFL licensed as a dealer (Type 01) has to record an acquisition in the bound book after receiving a firearm?
- 1 business day (Correct answer)
- 7 days
- 10 days
- 30 days
Correct answer: 1 business day
Dealers must record firearm acquisitions in the A&D record no later than the close of business on the day of acquisition.
Question 3: Which ATF form must a licensed dealer obtain and retain when transferring a firearm to another FFL?
- ATF Form 4473
- ATF Form 3310.4
- A copy of the transferee's FFL (Correct answer)
- ATF Form 5300.38
Correct answer: A copy of the transferee's FFL
When transferring a firearm to another FFL, the transferor must obtain and retain a copy of the transferee's federal firearms license.
Question 4: An ATF Industry Operations Inspector (IOI) arrives at a licensed premises for a compliance inspection. The licensee's employee is present but the owner is unavailable. What should occur?
- The IOI must reschedule for a time when the owner is present
- The employee may allow the inspection to proceed if they have authority to act for the licensee (Correct answer)
- The IOI can only inspect the bound book but not the inventory
- The inspection is void unless the licensee signs a consent form
Correct answer: The employee may allow the inspection to proceed if they have authority to act for the licensee
An authorized representative of the FFL may consent to and participate in an ATF compliance inspection when the licensee is unavailable.
Question 5: A self-inspection reveals a firearm in inventory that does not appear in the acquisition records. What is the first step the FFL should take?
- Immediately contact local law enforcement
- Research the firearm's origin to determine how it was acquired (Correct answer)
- Destroy the firearm to avoid liability
- List the firearm as stolen on ATF Form 3310.11
Correct answer: Research the firearm's origin to determine how it was acquired
The FFL should investigate the source of the unrecorded firearm before taking any other action, then record it and report if appropriate.
Question 6: Under 27 CFR 478.125, how long must a licensed dealer retain completed ATF Forms 4473?
- 5 years from the date of transfer
- 10 years from the date of transfer
- 20 years from the date of transfer (Correct answer)
- Indefinitely or until the license lapses
Correct answer: 20 years from the date of transfer
FFLs must retain completed Forms 4473 for at least 20 years from the date of the recorded firearm transfer.
Question 7: Which of the following inventory discrepancies would most likely trigger an ATF referral for further investigation during a compliance inspection?
- One firearm listed as sold but the Form 4473 is misfiled
- A pattern of multiple missing handguns with no corresponding disposition records (Correct answer)
- A bound book entry with a corrected serial number that was initialed
- A delay in recording an acquisition by one business day
Correct answer: A pattern of multiple missing handguns with no corresponding disposition records
A pattern of missing handguns without disposition records suggests potential trafficking or theft and would prompt ATF to escalate beyond a routine compliance review.
FFL Compliance Auditing & Self-Inspection 2
During a self-inspection, an FFL discovers that 12 bound book entries lack the required acquisition date.
What is the most appropriate immediate corrective action?