Loss Prevention Checklist for 2020

To assist brands beginning a new audit or loss prevention program, Compliant IA regularly publishes how-to guides, best practice content, and advice from retail experts.

With “shrinkage” amounting to 1.7% of gross sales for the average North-American retailer, the financial stakes are high.  Use this sample checklist as a guide to minimize theft, fraud, vandalism and waste.

Physical Security

  1. What was the date of the last LP audit?
  2. Does location have a key control log for all business keys?
  3. Does location change locks when a key is lost or stolen?
  4. The location has a functioning alarm system?
  5. Each associate has their own alarm code?
  6. Location does not allow non-associates in the store outside of operating 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. Does the location change passcodes at scheduled intervals?
  12. Is there a camera covering every POS station?
  13. How many security cameras are offline or down?
  14. Does the loading or delivery area have a working camera?
  15. Are public washrooms monitored and “no merchandise allowed beyond this point” signs in place?

Cash Handling

  1. Record amount in the cash float
  2. Does location conduct cash register audits at scheduled intervals?
  3. Does location have shortages/overages throughout the month?
  4. Does location have a shortage/overage log for each register?
  5. Does a location manager audit paperwork at regular intervals?
  6. Location looks at monthly POS activity of each associate?
  7. Location does not allow phones at the POS or Workstations?
  8. Location monitors shift sales by associate?
  9. Location has a camera/recording system over POS?
  10. Is POS/workstation always within view of staff?
  11. Are cash drops being done throughout the day as needed?
  12. What was the date of the last safe check?
  13. The location has a camera/recording system in the stock area?


  1. Are high theft items merchandised appropriately?
  2. Are showcases operational and secured?
  3. Does every item have a hang tag or barcode?
  4. Does merchandise have a security tag system in place?
  5. Location conducts regular inventory counts?
  6. What was the date of the last inventory audit?
  7. Is all delivered product matched to invoice or packing slips?
  8. Is all damaged or defective product kept in a single location?
  9. Is damage or defective product disposal tracked and reviewed?


  1. Location promotes the business abuse line and open door policy?
  2. The location has the local non-emergency phone number posted?
  3. Location has written policies for loss prevention?
  4. Location has regular discussions on loss prevention?
  5. What was the date of the last LP training session?
  6. Location conducts criminal background checks on new associates?
  7. Location has a written code of conduct issued to each associate?
  8. Staff understands the refund policy?
  9. Are staff voiding their own transactions?
  10. Are staff restricted from performing self or family purchases?
  11. Do staff greet customers upon entry?
  12. Do staff understand how to handle damaged or defective products?

More ways to improve your loss prevention standards and lower shrink:

Compliant IA is the leading retail audit platform. It runs on smartphones, tablets, and laptops. Field managers and stores use the app to complete smart checklists at store-level, take photos, and assign tasks with automated reminders. Head office can ensure programs are deployed in time, in full,  everywhere.

Compliantia - Loss Prevention Guide - Post - v2-02


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