gross turnover audit (gto AUDIT)
A Gross Turnover Audit (GTO Audit) is a special purpose audit of a Licensee’s schedule of gross sales turnover, in relation to all licensable activities under the Lease Agreement to operate Business granted by the Licensor in Singapore. The audit is mandatory for all retailers and commercial real estate agents operating in large shopping areas. The schedule of gross sales turnover is required to meet the requirements of the Licensor in relation to the determination of the annual license fee of the Licensee.
There is a general provision in the tenancy agreement entered between the landlord and the tenant whereby the tenant is required to submit the auditor-certified monthly sales report for the lease of premises within the stipulated period from the tenant’s financial year end, or if the landlord so requires.
The certified report shall validate the amount of sales for the relevant period and hence, the licensee/tenant is obliged to appoint an auditor to inspect its books and provide the certificated report to the property management. The certified report issued by the auditor is conclusive evidence that the financial statements present a true and fair view of the monthly gross sales turnover.
Benefits of Gross Turnover Audit (GTO Audit)
There are a number of benefits in conducting an GTO Audit:
- It provides assurance and compliance with lease agreement.
- The landlord gets reasonable assurance that the gross sales amount mentioned in financial statement is accurate and complete.
- A proper audit of gross revenue can minimize revenue leakage and hence, improve the profitability of the tenant by identifying any unrecorded revenue
Why Tan, Chan & Partners?
Having satisfactorily providing auditing and assurance services in Singapore since 1982, your engagement with us will ensure all the statutory standards are complied with. Our Company Profile >
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