GTO Audit in Singapore: A Guide for Shopping Mall Tenants

If you’re a retailer or F&B operator leasing a unit in a shopping mall in Singapore, you’ve probably come across the term “GTO Audit” in your tenancy agreement. Short for Gross Turnover Audit, this requirement is not just a routine checkbox—it’s a formal process that ensures transparency in reporting your business’s sales revenue.

This guide is specially written for shopping mall tenants in Singapore to understand what GTO audits are, why landlords require them, and how to prepare for them without stress.

What is a GTO Audit?

A GTO (Gross Turnover) Audit is an independent verification of your business’s reported gross sales revenue, conducted by a licensed audit firm. It’s a process designed to ensure that the turnover figures submitted to your landlord or mall management are accurate and consistent with your actual business activity.

This is particularly relevant in Singapore, where many shopping mall leases (e.g. at Junction 8, NEX, Jewel Changi, Compass One, and Tampines 1) are structured with a base rent + GTO rent model. This means that part of your rent is determined based on your business’s gross turnover.

Why Do Landlords Require a GTO Audit?

Landlords use GTO audits for several key reasons:

1. Accuracy in Rent Calculation:
   When rent is partially based on a percentage of sales (e.g., 15% of monthly turnover), it’s vital that the figures submitted by tenants are accurate.

2. Data-Driven Leasing Decisions:
   GTO data helps landlords understand which tenants are thriving, and how the mall overall is performing. This informs tenant mix, lease renewals, and rental adjustments.

3. Compliance and Integrity:
   An external auditor ensures that there’s no manipulation or underreporting of sales figures. This protects the landlord and promotes a fair leasing ecosystem.

Who Needs to Do a GTO Audit?

If your tenancy agreement includes a clause requiring you to submit certified gross turnover figures, then you are obligated to perform a GTO audit. This usually applies to:

• Fashion and apparel retailers

• Food and beverage outlets

• Lifestyle and electronics stores

• Supermarkets and specialty grocers

• Beauty, wellness, and aesthetic clinics

Some malls require this monthly, quarterly, or annually. Always check your specific lease agreement.

What Is Included in a GTO Audit?

The audit firm will assess your reported turnover figures and verify them against a variety of documents, such as:

• POS (Point of Sale) system reports

• Sales ledgers and daily cash register tapes

• Monthly bank statements

• Merchant terminal (credit card) settlements

• Online order platforms (if applicable)

• Internal bookkeeping records

Auditors will then issue a GTO Certificate, signed and dated, confirming that your reported turnover is complete and accurate.

What Tenants Need to Prepare

If you’re preparing for your first GTO audit, here are a few essential steps to take:

1. Understand Your Lease Obligations

Double-check the section of your lease that outlines turnover reporting requirements. This will tell you the frequency, format, and deadlines for audit submissions.

2. Organize Sales Records

Keep accurate, complete, and organized records. A cloud-based POS system with sales tracking and integrated bank reconciliation features can significantly simplify this process.

3. Appoint a Licensed Auditor Early

Don’t wait till the last minute. It’s best to appoint a Singapore-registered public accounting firm that has experience in retail and F&B GTO audits.

4. Conduct Internal Checks

Before your auditor begins, do an internal reconciliation to ensure that the numbers reported to the landlord match your actual bank deposits and POS records.

5. Ask Questions

If you’re unsure about what documents are needed or what the landlord expects, ask your auditor for clarification. A good audit firm will walk you through the process.

Common Pitfalls to Avoid

Tenants often make the following mistakes that can delay or complicate the audit:

• Inconsistent reporting formats – Submit your sales in the format required by the landlord.

• Unreconciled discrepancies – Ensure cash, credit card, and online orders are properly accounted for.

• Late submission – Missing deadlines can result in penalty fees or strained relations with the landlord.

• Poor documentation – Sales records should be complete, backed by source documents.

How Much Does a GTO Audit Cost in Singapore?

The cost of a GTO audit in Singapore varies depending on the complexity of your operations and the duration of your tenancy. Most small to mid-sized retail tenants can expect to pay between $300 to $800 for an annual audit.

More complex or multi-location businesses may incur higher fees, especially if the audit includes multiple revenue streams (e.g., in-store, online, delivery platforms).

At Koh & Lim Audit PAC, for example, we offer affordable and efficient GTO audit services tailored to the needs of shopping mall tenants.

How Long Does the GTO Audit Take?

The audit duration typically ranges from 3 to 10 working days, depending on how well-prepared the tenant is. Submitting clear, organized, and complete documentation can significantly speed up the process.

If your landlord requires a hard copy and digital submission, factor in additional time for printing, delivery, and confirmation.

What Happens After the Audit?

Once the audit is complete, the auditor will issue a GTO Certificate. This document will be submitted to the landlord or mall management, usually as part of your lease compliance requirements.

If discrepancies are discovered, you may need to:

• Submit revised figures

• Top up unpaid rental (if underreported)

• Clarify explanations with both the auditor and landlord

In serious cases, consistent underreporting may lead to contractual penalties, loss of tenancy rights, or reputational damage.

Final Thoughts

A GTO audit might seem like just another admin task, but it’s a vital component of being a responsible tenant in a Singapore shopping mall. Done right, it promotes transparency, strengthens trust with your landlord, and helps you keep your business finances in good order.

By preparing early, keeping organized records, and working with a professional audit firm, you can easily navigate the GTO audit process and meet your lease obligations with confidence.

If you’re a tenant looking for reliable GTO audit services, reach out to a licensed and experienced audit partner today.

Find help at https://www.auditservices.sg/gross-turnover-gto-audit-singapore/