TDGI's Financial Audit will include the inventory owned by TDGI ... you can not have a Certified Financial Audit that does not include the existing inventory of product owned by said entity ... you might want to check GAAP guidelines for clarification.
There is a big difference between a physical inventory and an accounting audit.
What you went though in the 80's was a physical inventor. The physical inventory is one part of an accounting audit, but by no means, the entire thing.