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Loss Prevention Audit Checklist

Performing Loss Prevention Audit Checklist using eAuditor & audit inspection.

General Security Measures

1. Security Policies and Procedures
   • Do personnel maintain and follow documented security policies and procedures?
   • Do supervisors or trainers regularly train employees on these policies and procedures?
2. Access Control
   • Are access control systems (e.g., key cards, biometric scanners) in use?
   • Do staff members regularly maintain and review visitor logs?
3. Surveillance Systems
   • Security personnel install CCTV cameras in strategic locations.
   • Security personnel retain surveillance recordings for an appropriate period.
4. Alarm Systems
   • Do security personnel ensure alarm systems are installed and functioning properly?
   • Do security personnel test alarm systems regularly?
5. Lighting
   • Is there adequate lighting in all areas, both inside and outside the premises?

Employee Management

1. Hiring Practices
   • Do employers conduct thorough background checks on all new employees?
   • Do hiring managers perform reference checks?
2. Training and Awareness Loss Prevention Audit
   • Do managers train employees on loss prevention measures?
   • Is there a program in place for ongoing training and awareness?
3. Employee Conduct
   • Are there policies regarding employee personal belongings in the workplace?
   • Do supervisors conduct random inspections?
4. Employee Identification
   • Do employers require employees to wear ID badges?
   • Are there policies to control and monitor temporary or visitor badges?

Inventory Management Loss Prevention Audit

1. Receiving Procedures
   • Do staff inspect and verify incoming goods against purchase orders?
   • Do staff document and investigate discrepancies?
2. Storage and Handling
   • Do staff store high-value items securely?
   • Do staff organize storage areas and control access?
3. Inventory Counts
   • Do staff conduct regular inventory counts?
   • Are discrepancies between physical counts and inventory records investigated?
4. Record Keeping
   • Do staff update inventory records accurately and promptly?
   • Do staff audit records regularly?

Cash Handling for Loss Prevention Audit

1. Cash Management Policies

   • Do managers create written policies for cash handling and management?

   • Do trainers train employees on these policies?
2. Cash Register Controls
   • Do staff reconcile cash registers at the end of each shift?
   • Staff reconcile cash registers at the end of each shift.
3. Bank Deposits
   • Are bank deposits made regularly and timely?
   • Are deposits verified by a second person?
4. Petty Cash Controls
   • Is petty cash usage monitored and documented?
   • Are petty cash reconciliations performed regularly?

Fraud Prevention

1. Segregation of Duties
   • Are responsibilities divided to reduce the risk of fraud (e.g., separating authorization, custody, and record-keeping)?
2. Transaction Monitoring
   • Are high-value and unusual transactions monitored?
   • Are there mechanisms in place to detect fraudulent transactions?
3. Vendor Management
   • Are vendors vetted thoroughly?
   • Are payments to vendors regularly reviewed and authorized?

Physical Security

1. Building Security
   • Are entrances and exits secured properly?
   • Are security patrols conducted regularly?
2. Key Management
   • Is there a system for issuing and tracking keys?
   • Are lost or stolen keys reported and addressed immediately?
3. Parking Lot Security
   • Is the parking area well-lit and monitored?
   • Are there procedures for reporting suspicious activities?

Incident Response

1. Incident Reporting
   • Is there a clear procedure for reporting incidents of theft, loss, or fraud?
   • Are incidents documented thoroughly?
2. Investigation Procedures
   • Are incidents investigated promptly and thoroughly?
   • Are corrective actions taken based on investigation findings?
3. Communication
   • Are employees informed about incidents and preventive measures?
   • Is there a communication plan for handling incidents?

Review and Improvement

1. Regular Audits
   • Are loss prevention audits conducted regularly?
   • Are audit findings reviewed and addressed promptly?
2. Continuous Improvement
   • Are loss prevention measures reviewed and updated regularly?
   • Are employees encouraged to provide feedback on loss prevention practices?

1. eAuditor Audits & Inspections Accessibility
   • Is the eAuditor Audits & Inspections user-friendly and accessible on all relevant eAuditor Audits & Inspections devices?
   • Is there offline functionality for areas with poor connectivity?
2. User Authentication
   • Does the eAuditor Audits & Inspections have secure login features (e.g., biometrics, two-factor authentication)?
   • Are user roles and permissions clearly defined?
3. Data Entry and Reporting
   • Can users easily input data and attach photos/videos?
   • Are audit reports automatically generated and shareable directly from the eAuditor Audits & Inspections?

General Security Measures

1. Security Policies and Procedures
   • Can users access and review security policies and procedures via the eAuditor Audits & Inspections?
   • Are training materials and updates available in the eAuditor Audits & Inspections?
2. Access Control
   • Can access control logs be viewed and updated in the eAuditor Audits & Inspections?
   • Is there functionality to record and track visitor entries and exits?
3. Surveillance Systems
   • Can users check and report the status of CCTV cameras?
   • Is there an option to upload images/videos from surveillance systems directly into the audit report?
4. Alarm Systems
   • Can users verify and log the status of alarm systems?
   • Is there functionality for recording alarm test results and issues?
5. Lighting
   • Can users capture and document lighting conditions with photos?
   • Is there a checklist for verifying lighting in all critical areas?

Employee Management

1. Hiring Practices
   • Can background and reference check documentation be uploaded and reviewed?
   • Is there a checklist for ensuring all hiring steps are followed?
2. Training and Awareness
   • Can training sessions be scheduled and tracked through the eAuditor Audits & Inspections?
   • Is there a quiz or survey functionality to assess employee understanding of loss prevention?
3. Employee Conduct
   • Can inspections and checks for employee personal belongings be logged?
   • Is there an incident reporting feature for employee misconduct?
4. Employee Identification
   • Can users verify and log compliance with ID badge policies?
   • Is there a system for tracking issued, lost, and temporary badges?

Inventory Management

1. Receiving Procedures
   • Can users log and verify incoming goods against purchase orders?
   • Is there functionality to document and investigate discrepancies?
2. Storage and Handling
   • Can users document storage conditions with photos and notes?
   • Is there a checklist for securing high-value items?
3. Inventory Counts
   • Can inventory counts be logged directly in the eAuditor Audits & Inspections?
   • Is there an automated comparison of physical counts and inventory records?
4. Record Keeping
   • Can users upload and review inventory records and audit logs?
   • Is there a feature for regular audit reminders and documentation?

Cash Handling

1. Cash Management Policies
   • Are cash handling policies accessible through the eAuditor Audits & Inspections ?
   • Can training on these policies be tracked and logged?
2. Cash Register Controls
   • Can register reconciliation be logged at the end of each shift?
   • Is there an alert system for discrepancies?
3. Bank Deposits
   • Can users schedule and log bank deposits?
   • Is there a feature for verification by a second person?
4. Petty Cash Controls
   • Can petty cash usage and reconciliation be documented?
   • Is there an audit trail for petty cash transactions?

Fraud Prevention

1. Segregation of Duties
   • Can users verify and log compliance with segregation of duties policies?
   • Is there a workflow for documenting exceptions?
2. Transaction Monitoring
   • Can high-value and unusual transactions be flagged and reviewed in the eAuditor Audits & Inspections?
   • Is there a feature for documenting fraud investigations?
3. Vendor Management
   • Can vendor vetting and payments be logged and reviewed?
   • Is there a checklist for vendor approval processes?

Physical Security

1. Building Security
   • Can users log and verify the security of entrances and exits?
   • Is there a checklist for regular security patrols?
2. Key Management
   • Can key issuance and tracking be logged?
   • Is there an incident reporting feature for lost or stolen keys?
3. Parking Lot Security
   • Can users document and verify parking area conditions with photos?
   • Is there a reporting system for suspicious activities?

Incident Response

1. Incident Reporting
   • Is there a feature for reporting incidents of theft, loss, or fraud?
   • Can incidents be documented with photos, videos, and notes?
2. Investigation Procedures
   • Can users track the status of ongoing investigations?
   • Is there a checklist for investigation steps and corrective actions?
3. Communication
   • Can incident reports be shared with relevant stakeholders through the eAuditor Audits & Inspections?
   • Is there a notification system for updates and preventive measures?

Review and Improvement for Loss Prevention Audit

1. Regular Audits
   • Can users schedule and conduct regular audits using the eAuditor Audits & Inspections?
   • Is there a feature for tracking and addressing audit findings?
2. Continuous Improvement
   • Can users provide feedback on loss prevention practices?
   • Is there a system for updating and improving loss prevention measures based on feedback and audit results?

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