To assist multi-unit retailers starting or improving their retail audit program, Compliant IA regularly publishes how-to guides, best practices and checklists. Use this sample Loss Prevention Checklist to create or update your loss prevention program across your locations.
Loss prevention is a set of policies and procedures designed to minimize theft, fraud, vandalism and waste. With “shrinkage” amounting to 1.7% of gross sales for the average North-American retailer, the financial stakes are high. Below, a list of criteria for visiting/auditing stores in the context of loss prevention.
- Record date of the last LP Audit
- Location has a key control log for all business keys
- Locks are changed when a key is lost or stolen
- Location has a functioning alarm system
- Each associate has their own alarm code
- Location does not allow non-associate in the store outside of operating hours (posted hours)
- Non associates are not allowed in offices or stock areas
- Register (POS) keys are kept in a sealed and secured location
- Associates have individual ID’s and Passcodes to the POS
- Only Managers/Supervisors can conduct “high risk” transactions on the POS
- Location changes passcodes every six months
- Is there a camera covering every POS station?
- How many security cameras are offline or down?
- General comments on physical security
- Record amount in the cash float
- Cash register audits are conducted three times per day
- There is a shortage/overage log for each register
- Location self-audits daily paperwork
- Monthly POS activity by associates are reviewed
- Location does not allow phones at the POS or Workstations
- There are small shortages and overages throughout the month
- Location monitors shift sales by associate
- There are monthly inventory counts
- Location has a camera/recording system over the POS
- There is a camera/recording system in the stock area
- Location promotes the business abuse line and open door policy
- Regular discussions on loss prevention occur
- Location conducts criminal background checks on new associates
- There is a written code of conduct issued to each associate
- Location has written policies for loss prevention
For more on loss prevention, see our comprehensive guide: