Loss Prevention Checklist

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 checklist to create or update your loss prevention program across your retail 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.

Physical Security

  1. Record date of the last LP Audit
  2. Location has a key control log for all business keys
  3. Location changes locks when a key is lost or stolen
  4. Location has a functioning alarm system
  5. Each associate has their own alarm code
  6. Location does not allow non-associate in the store outside of operating hours (posted hours)
  7. Non associates are not allowed in offices or stock areas
  8. Register (POS) keys are kept in a sealed and secured location
  9. Associates have individual ID’s and Passcodes to the POS
  10. Only Managers/Supervisors can conduct “high risk” transactions on the POS
  11. Location changes passcodes every six months
  12. Is there a camera covering every POS station?
  13. How many security cameras are offline or down?
  14. General comments on physical security


Cash Handling

  1. Record amount in the cash float
  2. Location conducts cash register audits three times per day
  3. Location has a shortage/overage log for each register
  4. Location self-audits daily paperwork
  5. Location looks at monthly POS activity by associate
  6. Location does not allow phones at the POS or Workstations
  7. Location has small shortages and overages throughout the month
  8. Location monitors shift sales by associate
  9. Location conducts monthly inventory counts
  10. Location has a camera/recording system over the POS
  11. Location has a camera/recording system in the stock area


  1. Location promotes the business abuse line and open door policy
  2. Location has regular discussions on loss prevention
  3. Location conducts criminal background checks on new associates
  4. Location has a written code of conduct issued to each associate
  5. Location has written policies for loss prevention

Compliant IA is a complete retail execution and store communication platform. It runs on smartphones, tablets, and laptops. It combines task management, social collaboration, smart checklists, action plans and photo verification to ensure store programs are communicated and executed in time, in full, in all locations.

Compliantia - Loss Prevention Guide - Post - v2-02

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