Gross Turnover Audit (GTO Audit) – Ensuring Compliance and Accuracy
A Gross Turnover Audit (GTO Audit) is a specialized audit focused on a Licensee’s gross sales turnover, as outlined in the Lease Agreement for operating a business under the Licensor’s terms in Singapore. This audit is mandatory for retailers and commercial real estate agents in large shopping centers. The schedule of gross sales turnover must comply with the Licensor’s requirements to determine the Licensee’s annual license fee.
Typically, the tenancy agreement requires the tenant to submit an auditor-certified monthly sales report within a specified period after the tenant’s financial year-end, or at the landlord’s request. This certified report serves as proof of the sales for the given period. As a result, the tenant must engage an auditor to review the financial records and issue a certified report to the property management. This report serves as conclusive evidence that the financial statements accurately reflect the monthly gross sales turnover.
Benefits of a Gross Turnover Audit (GTO Audit)
Conducting a GTO Audit offers several advantages:
- Ensures compliance with the lease agreement.
- Provides landlords with confidence that the reported gross sales are accurate and complete.
- Helps identify any unrecorded revenue, minimizing potential revenue loss and improving tenant profitability.
By engaging with us, you can be assured that all statutory standards will be met.
Contact WLP today for a no-obligation consultation with our specialists.