How to Prepare for a GTO Audit

The Gross Turnover Audit (GTO Audit) is a special-purpose audit, mandated for businesses as per their lease agreements, and verifies the licensee’s gross sales turnover. It involves scrutinising the gross sales turnover of a retail business, which forms a component of the rental agreement with the landlord. It ensures that the statements provided to property management present a true and fair view of the monthly gross sales turnover. 

Pre-Audit Checklist

Gather Key Documents

Preparation for a GTO audit requires organising all necessary documentation. Ensure you have the following documents: 

  • Lease Agreement: The cornerstone document outlining the terms of the GTO audit.
  • System-Generated Sales Reports: Collect daily and monthly sales reports, typically from your Point of Sale (POS) system. These reports should provide a detailed and transparent record of all sales transactions.
  • Monthly Sales Reports Submitted to Landlords: These are critical for comparing with your internal records and ensuring consistency in what is reported to both the landlord and during the audit.

Review Internal Controls

An in-depth review of your business’s internal control mechanisms is a crucial step in preparing for a GTO audit. Start by ensuring the accuracy of sales records. Confirm that all sales transactions are recorded accurately and completely in your financial systems. Next, undertake data verification by cross-checking sales data with bank deposits and receipts to ensure consistency and accuracy. It’s also important to identify weaknesses by looking for any discrepancies or anomalies in sales records. Address these issues promptly to ensure accurate reporting. Additionally, review and refine your documentation processes to ensure a clear audit trail is maintained for all financial transactions.

Your statements should be clear, comprehensive, and reflective of your sales turnover. They should ideally have: 

  • Consistency with the Lease Agreement: Ensure that the presentation of sales figures aligns with the specifications of your lease agreement.
  • Breakdown of Sales Categories: If applicable, categorise your sales appropriately and provide detailed breakdowns, especially if your business operates in multiple revenue streams.
  • Up-to-date Statements: Confirm that all statements are current and represent the period to be audited.
  • Clear Representation: Structure your statements to be easily understandable.

Expert Guidance with Tan, Chan & Partners

Audit certification in Singapore requires meticulous planning and preparation. However, while a GTO audit can seem daunting, the proper guidance can streamline the process, ensuring compliance and accuracy. Tan, Chan & Partners, a seasoned audit firm in Singapore, offers expert services to ensure your business smoothly navigates the GTO audit process and is the ideal partner for audit certification in Singapore. Our team of experienced auditors can assist you by helping to prepare all necessary documents, reviewing your financial systems, and providing support during the audit. We ensure your business is well-equipped to handle the audit as effectively as possible. 

For comprehensive assistance on GTO audits and audit certification in Singapore, reach out to Tan, Chan & Partners. Let us help you achieve a successful and compliant audit experience.

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