The Retail Store Audit: Using Technology To Optimize The Audit Process

Retail store audit functions, challenged by resource and budget limitations, multiple business locations, and regulatory reforms, are turning to technology to manage the often vast quantities of information associated with store audits. While audit software has been available for several years and offers a viable solution for managing the store audit process, some retail organizations are not ready to take the electronic leap. Staffing priorities, such as assisting with the implementation of new regulatory processes, annual audit projects and limited man-hours, as well as strained budgets, keep some internal audit, loss prevention or store operations functions from venturing into the electronic store audit world.

Traditional Store Audits
Whether it is reducing shrink or complying with regulatory requirements, a rigorous store-level audit process is critical to protecting and substantiating company assets and reporting processes, as well as providing management with the real-time information necessary to focus on identifying and resolving issues. Traditional retail store audit methodologies include a visit from an internal auditor or loss prevention personnel; they then complete a formal audit work plan, which results in significant paperwork. The subsequent transfer of hand-collected data or paperwork into analysis tools often results in a substantial time lag between the audit and reporting of findings to management, slowing the decision process and resulting in missed opportunities to implement timely corrective action. Additionally, performing traditional audits alone often results in incomplete or infrequent coverage of stores due to resource constraints, limiting the efficiency and effectiveness of the store audit function.

The current, traditional method of conducting store audits would benefit from an innovative use of technology. In current times, businesses are immersed in a significant regulatory environment and desire process efficiencies that both produce cost savings and improve effectiveness. As a result of this paradoxical environment, two opportunities have evolved to satisfy these needs: control self-assessment and the technologies that support this process.