Loss Prevention Checklist

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.

Physical Security

  1. Record date of the last LP Audit
  2. Location has a key control log for all business keys
  3. Locks are changed 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. Cash register audits are conducted three times per day
  3. There is a shortage/overage log for each register
  4. Location self-audits daily paperwork
  5. Monthly POS activity by associates are reviewed
  6. Location does not allow phones at the POS or Workstations
  7. There are small shortages and overages throughout the month
  8. Location monitors shift sales by associate
  9. There are monthly inventory counts
  10. Location has a camera/recording system over the POS
  11. There is a camera/recording system in the stock area


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

For more on loss prevention, see our comprehensive guide:

Compliantia - Loss Prevention Guide - Post - v2-02

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