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.
Methodology: This checklist was compiled from publicly available sources and moderated using industry research and our experience with the retail and service industries.
Notes to Compliantia users:
- Checklists can easily be imported into your Compliantia account using the Excel™ upload method. You may also add a point value, photos and attachments (e.g. planograms) to each item.
- Items that are not applicable can be marked “n/a” during the visit. If so, they will not be counted towards the final score.
- Record date of the last LP Audit
- Location has a key control log for all business keys
- Location changes locks 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
- Location conducts cash register audits three times per day
- Location has a shortage/overage log for each register
- Location self-audits daily paperwork
- Location looks at monthly POS activity by associate
- Location does not allow phones at the POS or Workstations
- Location has small shortages and overages throughout the month
- Location monitors shift sales by associate
- Location conducts monthly inventory counts
- Location has a camera/recording system over the POS
- Location has a camera/recording system in the stock area
- Location promotes the business abuse line and open door policy
- Location has regular discussions on loss prevention
- Location conducts criminal background checks on new associates
- Location has a written code of conduct issued to each associate
- Location has written policies for loss prevention
For a complete list of free retail audit checklists (no email required!) please see: https://blog.compliantia.com/category/checklists/retail-audit-checklists/