What should car dealers do to prepare for an audit?

Preparing for an audit requires car dealers to meticulously organize their financial records and maintain compliance documentation. This approach ensures that all necessary information is readily available and easy to access, which is crucial during an audit process. Having a systematic organization of records, including sales contracts, invoices, and service records, can greatly facilitate the auditing process and demonstrate the dealer's compliance with industry regulations and standards. It also reflects a commitment to transparency and accountability, ultimately contributing to the credibility and integrity of the dealership.

In contrast, storing records haphazardly would lead to inefficiencies and complications during the audit, potentially raising red flags. Preparing only when notified creates unnecessary last-minute stress and risks being unprepared, which could result in unfavorable findings. Additionally, focusing solely on sales practices neglects other important aspects of the business that auditors may examine, such as financial statements, operational procedures, and regulatory compliance. Hence, the comprehensive preparation highlighted in the correct answer is essential for a successful audit.