Inventory Shrink Audit Checklist

This inventory shrink audit checklist provides systematic shrink identification per NRF Loss Prevention Research Council methodology, ASIS International Retail Security Standards, and RILA best practices. Designed for LP managers and inventory control analysts conducting root-cause shrink audits.

  • Industry: Retail / Security Services
  • Frequency: Quarterly
  • Estimated Time: 90-120 minutes
  • Role: LP Manager / Inventory Control Analyst
  • Total Items: 10
  • Compliance: NRF National Retail Federation Loss Prevention Research Council, ASIS International Retail Loss Prevention Standards, RILA Retail Industry Leaders Association, GAAP Inventory Accounting Standards, SOX Sarbanes-Oxley Inventory Controls (for public companies)

Shrink Category Analysis

Known vs. unknown loss breakdown by category.

  • External theft shrink percentage calculated and benchmarked?
  • Internal theft/employee shrink percentage identified and investigated?
  • Vendor over-shipment credits and invoice discrepancies analyzed?
  • Administrative error (pricing, markdown, damage) percentage separated from theft?
  • Unknown shrink identified and root cause investigation initiated?

High-Shrink Department Focus

Department-level shrink hotspot identification.

  • Top 3 shrink departments identified with dollar and unit variance?
  • SKU-level analysis completed for highest-shrink categories?
  • Cycle counts performed on top 10 shrink SKUs this period?
  • Shrink reduction action plan created with owners and target dates?
  • Shrink Audit Findings and Reduction Plan

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Why Use This Inventory Shrink Audit Checklist?

This inventory shrink audit checklist helps retail / security services teams maintain compliance and operational excellence. Designed for lp manager / inventory control analyst professionals, this checklist covers 10 critical inspection points across 2 sections. Recommended frequency: quarterly.

Ensures compliance with NRF National Retail Federation Loss Prevention Research Council, ASIS International Retail Loss Prevention Standards, RILA Retail Industry Leaders Association, GAAP Inventory Accounting Standards, SOX Sarbanes-Oxley Inventory Controls (for public companies). Regulatory-aligned for audit readiness and inspection documentation.

Frequently Asked Questions

What does the Inventory Shrink Audit Checklist cover?

This checklist covers 10 inspection items across 2 sections: Shrink Category Analysis, High-Shrink Department Focus. It is designed for retail / security services operations and compliance.

How often should this checklist be completed?

This checklist should be completed quarterly. Each completion takes approximately 90-120 minutes.

Who should use this Inventory Shrink Audit Checklist?

This checklist is designed for LP Manager / Inventory Control Analyst professionals in the retail / security services industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.

Can I download this checklist as a PDF?

Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.

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