Checklist template

Employee theft prevention for retailers

A ready-to-use checklist with 119 items in 6 sections, covering Package checks, Employee purchases, Discount use, Exception reports, Awareness, Hotline. Use it as-is in Bindy, or adapt it to your own standards in minutes.

  • 6 Sections
  • 119 Items
  • 103 Yes / No checks
  • 6 Scored ratings
  • 133 Points

Use this template How audits work

1. Package checks 20 items

  1. The written package check policy is posted at the employee exit Yes / No 1 pt
  2. Employees leave the building through the one designated employee exit Yes / No 1 pt
  3. A manager or key holder checks bags, backpacks and lunch coolers of every employee leaving at closing Yes / No 1 pt
  4. Employees leaving for a meal break are checked the same way as at the end of a shift Yes / No 1 pt
  5. The employee opens the bag and moves the contents; the person checking does not reach inside Yes / No 1 pt
  6. A bag check observed during the visit covered every compartment of the bag Yes / No 1 pt
  7. A manager's own bag is checked by another manager or key holder Yes / No 1 pt
  8. Personal bags are kept in lockers or the break room, never at a register or in the stockroom Yes / No 1 pt
  9. Coats and jackets are not kept on the sales floor or in stockrooms Yes / No 1 pt
  10. Clear bags are used for personal items carried on the sales floor where company policy requires them Yes / No 1 pt
  11. Personal items of a kind the store sells (cosmetics, phone chargers, bottled drinks) are tagged or logged on arrival Yes / No 1 pt
  12. Employees have signed the notice stating that lockers can be inspected Yes / No 1 pt
  13. Store merchandise found in a bag at the package check is compared with its receipt Yes / No 1 pt
  14. Employees leave personal bags and coats inside when they take trash or cardboard out Yes / No 1 pt
  15. Employees who come back onto the sales floor after clocking out are checked again when they leave Yes / No 1 pt
  16. Package checks take place at the exit door, in view of a camera where one is installed Yes / No 1 pt
  17. No employee vehicle is parked beside the receiving door or the dumpster enclosure Yes / No 1 pt
  18. Bags and tool boxes of vendors and contractors are checked when they leave the stockroom Yes / No 1 pt
  19. Employee bag checks observed during the visit Number
  20. Consistency of the package checks observed Rating
    • Everyone checked, managers included 5 pts
    • Most checked, some waved through 3 pts
    • Checks not being done 1 pt

2. Employee purchases 19 items

  1. Employees buy merchandise only on a break or off the clock Yes / No 1 pt
  2. Employee purchases are rung by a manager or a designated cashier, never by the employee Yes / No 1 pt
  3. Cashiers do not ring purchases for their own relatives or housemates Yes / No 1 pt
  4. The receipt is stapled to the bag of every employee purchase Yes / No 1 pt
  5. Merchandise bought before or during a shift is kept with its receipt in the locker or the designated area Yes / No 1 pt
  6. An employee purchase found in the break room or lockers during the visit matched its receipt item for item Yes / No 1 pt
  7. Food and drinks from the store being consumed in the break room have a receipt Yes / No 1 pt
  8. Merchandise that employees hold for themselves is kept in the designated hold area, labeled with a name and a date Yes / No 1 pt
  9. Employee holds do not exceed the hold period set by company policy Yes / No 1 pt
  10. On a sample of 3 marked-down employee purchases, the markdown was entered by someone other than the buyer Yes / No 1 pt
  11. Damaged or clearance items sold to an employee were marked down by a manager before the sale Yes / No 1 pt
  12. Employees do not buy limited-quantity promotional items before the store opens to customers Yes / No 1 pt
  13. Returns and exchanges by employees are processed by a manager Yes / No 1 pt
  14. Damaged or out-of-date product is disposed of or donated per company policy, not given to employees Yes / No 1 pt
  15. Vendor samples and free goods are logged by a manager before they are handed out Yes / No 1 pt
  16. Employee online orders shipped to the store are released through the customer pickup process Yes / No 1 pt
  17. Gift cards and coupons left behind by customers are turned in to the cash office Yes / No 1 pt
  18. Employee purchase receipts compared with merchandise during the visit Number
  19. Control of employee purchases Rating
    • Rung by a manager with receipt attached every time 5 pts
    • Rules known but not always followed 3 pts
    • Employees ring or bag their own purchases 1 pt

3. Discount use 21 items

  1. The employee discount is triggered by scanning the employee ID or discount card, not by a manual price change Yes / No 1 pt
  2. Each discounted sale is recorded under the employee's number Yes / No 1 pt
  3. Employees asked could state who may use their discount under company policy Yes / No 1 pt
  4. The discount is not extended to friends or to customers Yes / No 1 pt
  5. The discount is not combined with coupons or promotions where company policy forbids it Yes / No 1 pt
  6. Discount cards of employees who left in the last 90 days were deactivated on their last day Yes / No 1 pt
  7. The list of active discount holders matches the current schedule or roster Yes / No 1 pt
  8. Discounted purchases above the limit set by company policy were approved by the store manager Yes / No 1 pt
  9. Manual price overrides require a manager's code or key at the register Yes / No 1 pt
  10. Manager override codes are not written down at the registers Yes / No 1 pt
  11. Each manager uses a personal override code, not a shared one Yes / No 1 pt
  12. A reason code is entered for every price override Yes / No 1 pt
  13. Price matches are backed by the competitor's ad or a recorded reference Yes / No 1 pt
  14. The "store coupon" or "manager discount" key is restricted to managers Yes / No 1 pt
  15. Damaged-goods discounts follow the written scale set by company policy Yes / No 1 pt
  16. Senior, military or student discounts are given only when the customer shows the qualifying ID Yes / No 1 pt
  17. Cashiers do not scan their own loyalty card or phone number on customers' purchases Yes / No 1 pt
  18. Loyalty accounts of employees were reviewed for unusual point accumulation in the last period Yes / No 1 pt
  19. Employee discount transactions in the last week Number
  20. Price overrides in the last week (% of transactions) Number
  21. Control of discounts and overrides Rating
    • Every discount traceable and approved 5 pts
    • Some overrides without a reason or approval 3 pts
    • Codes shared or discounts not traceable 1 pt

4. Exception reports 22 items

  1. The point-of-sale exception report is reviewed by the store manager or loss prevention at least weekly Yes / No 1 pt
  2. Date of the last exception report review Date
  3. Each review is dated and initialed by the reviewer Yes / No 1 pt
  4. The review covers refunds without a receipt, by cashier Yes / No 1 pt
  5. The review covers post-voids, by cashier Yes / No 1 pt
  6. The review covers line voids, by cashier Yes / No 1 pt
  7. The review covers no-sale drawer openings, by cashier Yes / No 1 pt
  8. The review covers refunds issued to a card other than the card used for the purchase Yes / No 1 pt
  9. The review covers refunds processed by the cashier who rang the original sale Yes / No 1 pt
  10. The review covers gift card activations and merchandise credits issued Yes / No 1 pt
  11. The review covers suspended or cancelled transactions that were never completed Yes / No 1 pt
  12. The employee discount report is checked for employees whose use is far above the store average Yes / No 1 pt
  13. Cashiers above the thresholds set by company policy are flagged in writing Yes / No 1 pt
  14. At least one flagged transaction from the last period was compared with register video Yes / No 1 pt
  15. Register video shows the transaction text overlay or is linked to the transaction number Yes / No 1 pt
  16. Cash overages and shortages are tracked by cashier for each period Yes / No 1 pt
  17. Cashiers with repeated shortages have a documented follow-up Yes / No 1 pt
  18. Voided receipts are signed by a manager and kept with the day's paperwork Yes / No 1 pt
  19. Inventory adjustments and write-offs entered at the store are reviewed by the store manager each period Yes / No 1 pt
  20. Findings from the review are sent in writing to loss prevention or the district manager Yes / No 1 pt
  21. Cashiers flagged in the last exception report Number
  22. Quality of the exception review Rating
    • Reviewed weekly with documented follow-up 5 pts
    • Reviewed, but follow-up not documented 3 pts
    • Not reviewed 1 pt

5. Awareness 18 items

  1. A signed honesty or code of conduct acknowledgment is on file for a sample of 5 employees Yes / No 1 pt
  2. New-hire orientation covers the package check, employee purchase and discount rules Yes / No 1 pt
  3. Employees asked could explain what "sweethearting" at the register is Yes / No 1 pt
  4. Employees asked knew that theft leads to termination and possible prosecution per company policy Yes / No 1 pt
  5. Loss prevention awareness training was refreshed within the period set by company policy Yes / No 1 pt
  6. Seasonal and temporary hires received the same loss prevention orientation before working a register Yes / No 1 pt
  7. The store's shrink result for the last inventory is posted in the back of house Yes / No 1 pt
  8. An employee asked could state the store's shrink result or target Yes / No 1 pt
  9. Shrink and internal theft were discussed at a team meeting in the last 3 months Yes / No 1 pt
  10. Managers asked could name three warning signs of employee theft Yes / No 1 pt
  11. Managers asked knew not to question or search a suspected employee without loss prevention Yes / No 1 pt
  12. Cashiers asked knew that they answer for every transaction rung under their own login Yes / No 1 pt
  13. Cashiers observed locked or signed off the register before stepping away Yes / No 1 pt
  14. Employees asked knew that register transactions are reviewed against video Yes / No 1 pt
  15. Employees asked knew that the package check applies to managers as well Yes / No 1 pt
  16. The loss prevention awareness board in the back of house shows the current period's material Yes / No 1 pt
  17. Outcomes of internal theft cases are shared with the team without names, where company policy provides for it Yes / No 1 pt
  18. Employee awareness of theft controls Rating
    • Every employee asked knew the rules and the consequences 5 pts
    • Rules known, consequences not 3 pts
    • Most could not state the rules 1 pt

6. Hotline 19 items

  1. The ethics or theft hotline poster is displayed in the break room Yes / No 1 pt
  2. A second hotline poster is displayed at the time clock or the employee exit Yes / No 1 pt
  3. The phone number on the poster is the current one Yes / No 1 pt
  4. The hotline number worked when dialed during the visit Yes / No 1 pt
  5. The poster states that reports can be made anonymously Yes / No 1 pt
  6. The poster is available in the languages spoken by the store team Yes / No 1 pt
  7. The hotline is run by a third party or head office, not by store management Yes / No 1 pt
  8. The poster explains how to report a concern about the store manager Yes / No 1 pt
  9. New-hire orientation covers the hotline Yes / No 1 pt
  10. Employees asked knew that the hotline exists Yes / No 1 pt
  11. Employees asked knew where to find the hotline number Yes / No 1 pt
  12. The non-retaliation statement appears in the handbook or on the poster Yes / No 1 pt
  13. The manager could describe the steps to take when an employee reports theft in person Yes / No 1 pt
  14. Cases referred to the store by loss prevention in the last 12 months have a recorded outcome Yes / No 1 pt
  15. Employees asked about the hotline during the visit Number
  16. Employees asked who knew of the hotline Number
  17. Name of the store manager Short text
  18. Overall control of employee theft risk Rating
    • Package checks, purchase rules and report reviews all working 5 pts
    • Controls in place but applied unevenly 3 pts
    • Checks skipped or reports not reviewed 1 pt
  19. Corrective actions required Comments

About this template

This checklist is part of the Bindy template library. Yes / No checks score 1 point when met; ratings score the points shown for each option. The overall score is the percentage of points earned, with N/A answers excluded. In Bindy you can add photos, assign corrective actions, require sign-off and compare results across sites.

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