Perform Loss Prevention Audit using eAuditor

Loss Prevention Audit is a structured evaluation process designed to identify, assess, and reduce potential risks that could lead to financial loss, theft, fraud, property damage, or operational disruptions within an organization. It focuses on ensuring that policies, procedures, and controls are in place and effectively enforced to minimize preventable losses.

Performing Loss Prevention Audit using eAuditor ensures a systematic evaluation of operational, financial, and security practices to identify vulnerabilities that could lead to theft, fraud, inventory shrinkage, or other preventable losses. By digitizing audit workflows, assigning corrective actions in real time, and generating automated reports, eAuditor supports organizations in creating a culture of accountability, transparency, and proactive risk mitigation.

1. Purpose of Loss Prevention Audit

The primary aim of conducting a Loss Prevention Audit using eAuditor is to:

• Prevent avoidable losses caused by internal errors, theft, or procedural failures
• Identify gaps in security, cash handling, inventory, and employee practices
• Standardize inspections across branches, warehouses, or stores
• Create a real-time digital audit trail to support compliance, training, and investigations
• Track performance trends and enforce corrective actions efficiently

2. Scope of Audit

A comprehensive Loss Prevention Audit typically covers the following areas:

• Physical Security
• Inventory & Asset Control
• Cash Handling Procedures
• Employee Conduct & Access
• Store/Warehouse Operations
• Incident Documentation & Reporting
• Digital Systems & Surveillance
• Policy Compliance

3. Step-by-Step Loss Prevention Audit Process Using eAuditor

3.1. Pre-Audit Setup

• Open the Loss Prevention Audit Template in eAuditor
• Enter details: location, date, department/store, responsible auditor
• Review the latest incident reports, shrinkage trends, and last audit findings
• Notify relevant teams of the upcoming inspection and its focus areas

3.2. Physical Security Inspection

• Verify that CCTV cameras are operational, positioned correctly, and recording
• Check alarm systems, motion detectors, and panic buttons for functionality
• Ensure doors, windows, and emergency exits are secure and monitored
• Inspect perimeter lighting and entry logs for unauthorized access
• Document gaps in coverage using eAuditor’s photo capture feature

3.3. Inventory & Asset Control

• Conduct sample inventory spot checks against recorded stock levels
• Review receiving logs and outbound records for discrepancies
• Evaluate labeling, barcode use, and stockroom organization
• Identify any signs of product tampering, concealment, or loss
• Use eAuditor’s checklist to flag untagged items or expired products

3.4. Cash Handling Procedures

• Observe cash register operations, especially cash counts and handovers
• Review refunds, discounts, voids, and no-sale transactions for abuse patterns
• Inspect safe procedures, including dual access or PIN protection
• Ensure cash drawers are locked when not in use
• Assign tasks via eAuditor for any discrepancies or unsafe cash storage

3.5. Employee Conduct and Access

• Check that only authorized personnel access sensitive areas (e.g., stockroom, safe)
• Evaluate adherence to bag check policies and shift sign-in procedures
• Assess staff awareness of loss prevention policies and reporting channels
• Use eAuditor to document training gaps or policy violations

3.6. Store or Warehouse Operational Practices

• Review opening/closing procedures, including alarm arming/disarming logs
• Check delivery and return processes for control gaps
• Assess cleanliness and layout for obscured CCTV views or blind spots
• Verify incident report forms are available and used correctly

3.7. Incident and Policy Compliance Review

• Cross-check past incident logs (e.g., theft, fraud, accidents) against current risks
• Evaluate compliance with company policies, local laws, and loss prevention guidelines
• Ensure that corrective actions from previous audits have been resolved
• Use eAuditor to create action items for unresolved or recurring issues

3.8. Documentation and Reporting

• Record findings using:
  • Yes/No questions
  • Photos, comments, and issue severity
• Assign follow-up actions directly to relevant staff or managers
• Collect digital signatures of the auditor and store manager
• Automatically generate and share the audit report via email or cloud storage

4. Post-Audit Actions and Follow-Up

• Review the final report with store leadership or corporate loss prevention team
• Track the status of corrective actions within eAuditor’s task management module
• Schedule a follow-up audit or spot check to verify resolution
• Use analytics to compare loss trends across locations or over time
• Refine policies or training based on root cause analysis from audit data

5. Continuous Improvement with eAuditor

• Customize templates to reflect new risks (e.g., organized retail crime, cyber fraud)
• Integrate eAuditor with BI dashboards or inventory software for broader insights
• Set recurring reminders for audits, training, or security system tests
• Create a centralized risk register based on recurring audit findings
• Use historical data to justify investments in tech, staffing, or process changes

Summary

Using eAuditor for Loss Prevention Audits empowers organizations to proactively safeguard assets, minimize shrinkage, enforce security protocols, and strengthen operational controls. With structured digital checklists, real-time corrective action tracking, and automated reporting, eAuditor turns routine audits into strategic tools for long-term risk mitigation and organizational resilience.