"Retail Store Operations"
Retail Store Operations Audit Program Objective: Stores selected for audits based upon the results of an annual risk analysis. Audits are scheduled of retail store operations as a normal part of the annual audit plan. Store Operations policies and procedures are used to prepare audit tests for compliance. To understand, theft and shrinkage, input is obtained from the Asset Protection department in developing these procedures. Primary objectives and audit procedures performed in conducting these audits are as follows: The overall objectives of Retail Store Operations are to determine whether: Daily sales reports and supporting documentation are complete Deposits are made timely and recorded appropriately on the deposit log Gift certificates and manual sales invoices are accounted for and used sequentially Certificates and coupons are properly defaced/voided upon redemption Employee purchases are registered and witnessed by an employee other than the employee making the purchase Customer refunds are filled out completely and are properly witnessed Employee work times are reported correctly Prices for sale and clearance items are posted correctly on the sales floor Merchandise receipts and shipments are confirmed Inventory adjustments are properly approved and input timely Following are some of the significant audit steps used to achieve these objectives: Test a sample of daily sales reports for reasonableness of activity and completeness of documentation (i.e. voids, paid-outs, cash drawer openings, etc.) Review validated deposit slips for timeliness of deposits, and deposit logs for recording Verify sequence and completeness of gift certificates and manual sales invoices issued from Headquarters to gift certificate documentation maintained at the store Examine a sample of redeemed certificates and coupons for proper destruction Review a random sample of employee purchases for reasonableness of transactions and proper witness signatures Test a sample of refund transactions and verify refund was properly completed, witnessed and issued in accordance with company policy Verify hours summarized per work schedules to system inputs and verify employee signatures were obtained as verification of hours worked Test a sample of selected SKUs from the semi-monthly Clearance Price Change reports and verify proper pricing and tagging Review shipping and receiving procedures and verify that receipts and shipments properly match monthly billing and transfer summary reports Review current inventory adjustment log for completeness and timeliness of system entry