I tried searching and couldn't find any answers, on my S550 I see the parktronic indicators working however I do not hear and sound (beeping), is the audio turned off or is there something wrong with my system?

I believe it only starts beeping when you are getting very close to an object... like within the last 2 feet or something.

The red indicators should also light up at the same time.

Yes that's correct - from the manual