Police have set up a committee to oversee gun regulation after an Queensland Audit Office report found the existing system is creating "an unnecessary risk to community safety".

The report said the problems were mainly due to inadequate enforcement and compliance checks by police.

"QPS does not have the right balance between affording procedural fairness for licence applicants and managing community safety," auditor-general Brendan Worrall wrote.

"It sometimes grants firearm licences to people with a history of offending behaviour that may be a risk to public safety."

The auditor-general said there were almost 186,000 firearms licences and almost 830,000 registered firearms in 2019.

He warned that the police were granting licences to people when there were concerns about their suitability.

Mr Worrall said under existing rules the Weapons Licensing Unit only denies licences to applicants if they had been charged with certain offences and if that had happened in the previous five years.

That meant people with a history of offending behaviour, but no convictions, can still being granted gun licenses.

The report found that police failed to adequately monitor licence-holders.

More than 78 per cent who were granted licences between 2015-2019 have never been inspected.

Almost 65 per cent of licence-holders have gone 11 years or more before their first inspection.

Mr Worrall found that police weren't consistent in seizing guns either, which created "an unnecessary risk to community safety".

There were numerous cases of police failing to recover guns from licence-holders who had died, and of allowing unsuitable people to access guns through relatives and associations.

"Sometimes these delays meant that the firearms could not be located, and some are still unaccounted for," the report said.

"Consequently, QPS is ineffective in ensuring all firearms are accounted for."

The number of guns stolen in Queensland has also risen by seven per cent per year from 601 in 2015 to 643 in 2019.

The audit report found that the Weapons Licensing Unit doesn't proactively monitor gun dealers and the state's firearms register is not accurate or up to date.

Mr Worrall said parts of the register were on paper and not in a centralised digital system.

"The firearms register is no longer fit for purpose," he wrote.

The auditor-general made 13 recommendations including creating a fit-for-purpose gun register that can be updated in real time, and making risk-based inspections of licence-holders.

It was also recommended that non-compliance was monitored, reported and acted upon within a reasonable timeframe.

The audit report said the Weapons Licensing Unit should be immediately notified electronically from dealers about the sale, transfer and disposal of guns.

Deputy Police Commissioner Tracy Linford said the QPS accepted all 13 recommendations and would work to implement them through the new oversight committee.

"The QPS is committed to implementing all recommendations, especially those which promote the safe and effective regulation of firearms in Queensland," she said in a statement.

"Finding the necessary balance between community safety and the rights of the lawful firearm owning community will continue to be the focus of the QPS as action items are implemented and assessed."

Australian Associated Press