Loss Prevention Best Practice Audit
Cash Accountability
Are the store funds (petty cash/safe, tills) properly accounted for/balanced within +/-$1.00?
Is the safe locked and/or secured at the time of inspection?
Are prior day's deposits accounted for in the safe since the last deposit drop at the bank?
Is the Petty Cash Log used daily to account for store funds?
Does the deposit slip amount match the Total Amount line on the Store Closed POS nightly report?
Does the deposit slip contain the initials of the closing manager and the associate who verified the deposit?
Does the deposit slip contain the deposit bag # or disposable deposit bag tear off?
Are deposits taken to the bank at a minimum of twice per week (Mondays and Thursdays) as evidenced by the dates on the validated bank deposit slips?
Is the Deposit Log completed per section depending on the status of the deposit?
Are overages/shortages exceeding $10 reported to the home office (help desk) and the DM with explanation, if known?
Is the cash wrap free of loose change, unidentified receipts or merchandise and/or individual gift cards?
Are register till keys maintained in the safe or lock box for emergency use only?
Discussion Question:
Can associates explain how to check large bills for counterfeit? (Ask TWO associates)
Comments/Notes:
Does the Daily Sales Total Report have the deposit slip attached?
Does the Daily Sales Total Report have the disposable bag tear off attached?
Does the Daily Sales Total Report have the High Risk POS transaction receipts attached?
Are two signatures present, one being a member of management, on each available Refund transaction receipt?
Do the number of Post Void transactions listed on the Daily Sales Total Report match the on-hand transaction slips on-hand?
Does each on-hand Post Void transaction receipt contain two signatures (one being from management)?
Does each on-hand Post Void transaction receipt have an explanation for the transaction?
Does each on-hand Post Void transaction receipt have the original receipt attached?
Are Paid Out/Paid In transactions logged in full on the Paid Out Log?
Do Paid Out transactions have two signatures (associate is manager issuing Paid Out, payee is associate receiving the payout)?
Is each Paid Out transaction accompanied by a detailed receipt to support the expense?
Do No-Sale transaction receipts on-hand contain two signatures (one being a member of management)?
Have all associates completed their Guest Privacy/PCI Training in Axonify prior to using the registers?
Discussion Question:
Is identification required and name / phone number captured in POS on returns without a receipt? (Ask TWO associates)
Comments/Notes:
Loss Prevention
Does the store utilize the At-A-Glance to improve guest experience and prevent shoplifting? Is this system in place on the day of the audit?
Are fitting rooms free of merchandise, loose tickets, hangers and empty packaging?
Are associates assisting each guest into a fitting room, writing guest's first name on fitting room door and checking on guest while in the fitting room?
Are associates storing personal belongings in a secured locker while on shift? Exception applies to the Store Manager and Assistant Manager who are allowed to keep belongings in the office.
Are lockers free from personal locks?
Are lockers unlocked at the end of each associate's shift?
Are associate's bags and coats checked by management before exiting the store (on break or end of shift) in view of video camera?
Are clear trash bags used to store trash and are all cardboard boxes broken down prior to disposal?
Does management inspect trash/boxes prior to being removed from the store and supervise the trash removal process?
Are headsets/walkie talkies used by management and key associates to communicate to other associates / management?
Are associates asking visitors/vendors for identification before being granted access to stockrooms or cash wrap area and/or providing confidential information?
Are associates aware of the location of the Anonymous Hotline telephone number?
Do associates know the function and use of the Anonymous Hotline?
Are the Loss Prevention Awareness Center Board materials posted and up to date?
Are associates aware of the monthly newsletter topic?
Can associates elaborate on the monthly newsletter contents?
Have all prior audit exceptions been addressed and corrected?
Does the store have the last three months of self audits available for review?
Are associates aware of the previous physical inventory units and dollars lost per day as noted on the store's Shrink Result poster? (Ask TWO associates)
Do associates understand what steps should/should not be taken if a guest attempts to leave the store without paying for merchandise or is suspected of shoplifting while in the store? (Ask TWO associates)
Discussion Question:
Do associate's understand the use of recovery statements (non-accusatory) when dealing with a potential shoplifter? Ask for examples.
Can the management team identify the three primary sources of shrink and provide examples of each? (Ask TWO members of management, if available)
Are associates aware of the behavioral clues of a potential shoplifter?
Comments/Notes:
Inventory Control
Are shipment cases processed from oldest to newest (first in, first out) based on the dates written on each shipment case upon arrival to the store?
Do all completed outbound ship from store orders have a corresponding order in Xstore?
Do the physical items for in process orders (not fully sealed packages) match the packing slip. Verify UPCs.
Are associates aware of QA process for accuracy and packing guidelines to minimize damages in transit and guest presentation? Ask a leader.
Is a Damage Shipment Form completed for any cartons received as damaged or shows signs of tampering?
Are damages segregated between unprocessed and processed storage areas?
Are damages processed at a minimum of once per week by store management?
Do processed damages on-hand reflect the items noted on the Store Transfer Packing Slip?
Do completed Store Transfer Packing Slips on file contain two signatures, one of which is management, for authorization indicating the items were verified before being disposed of?
Was an RFID count submitted after close of the prior day?
Are guest holds held in a designated area?
Does each guest hold have a completed Hold tag attached to the item(s)?
Are guest holds limited to the close of business the following day unless authorized for extension by a manager?
Are associate holds limited to the end of the associate's shift?
Discussion Question:
Are UPS shipments verified/audited weekly through UPS website to confirm all shipments were completed for business purposes? (Ask TWO associates)
Are damaged items destroyed prior to being disposed of and cannot be purchased or taken by associates? (Ask TWO associates)
Comments/Notes:
Physical Security / Safety
Is the office secured at all times when unattended?
Do all managers who carry keys to the store have a completed /signed Key Holder Agreement form on file?
Are keys to the front, back and office doors in the possession of store management at all times?
Are cameras and monitors operational and/or maintenance issues have been reported for service, if applicable? Verify issues were reported for service via a maintenance request or email.
Is the date and time on the CCTV monitor accurate within +/- 5 minutes of current time?
Has the Monthly Detex Test Log been completed after the system has been tested?
Are exit doors closed with emergency exit door alarms (Detex) armed and functional? (test)
Is the alarm call list up to date with up to 4 Full Time Managers?
Do managers have their own alarm code and keep their codes confidential, not sharing codes with other managers/associates?
Are "permanent" off-site storage locations secured and is entry/key(s) accessible only to authorized management associates? This question only applies to stores with permanent offsites.
Are fire extinguishers hung, gage in the "green" zone and inspected within the last 12 months?
Are fire exits clearly marked and accessible (free of obstacles with the exception of shipment in process) with exit lights illuminated?
Discussion Question:
Are associates aware of how to respond to an active shooter situation? (Ask TWO associates)
Comments/Notes:
