BATF has the power to inspect your books and applicable guns. From what I have read, the compliance inspections are primarily concerned with record keeping, and in certain cases determining if the 03 FFL holder is conducting business on the license (which is of course a big no-no). The agents typically want to make sure all pertinent information present, and on occasion may want to examine particular firearms to be sure they are being recorded properly.
This is just what I've read/been told. Like I said, I never got inspected.
