Growing demand for turnover audit in retail sector
The popularity and growth of shopping malls is bringing a new dimension to the relationship between tenant and landlord – and requirements for a new type of audit.
In Turkey – as in many other countries – it seems like a new shopping mall opens almost every month. As leading brands compete for rental space in malls across major metropolitan areas, the relationship between tenant and landlord is changing. One of the key changes has been the replacement of the old type of rental contract with a turnover-based rental concept. This has led to the need for ‘turnover audit’.
What is turnover audit?
The turnover audit is aimed at organisations dealing with turnover-based rentals. These include shopping mall operators themselves, as well as companies operating through agents, commission-based producers selling licensed items through dealers and companies providing franchises.
Nexia Turkey has developed a service that audits the accuracy of turnover details provided by shops and companies, as well as the regulatory aspects of turnover-related documentation, including flow systems, bookkeeping and rental contracts, to calculate the rental amount. Turnover is calculated by reviewing documents, information-processing systems, IT systems, checking the accuracy of declarations submitted to fiscal administration and the suitability of lease agreements. A report is then filed at the end of the audit process.
The competitive nature of the retail sector has made it vital for shopping mall administration teams and their lessees to operate within a transparent, consistent and objective environment.
The turnover audit service verifies the true rental amount under the terms agreed between the landlord and tenant and identifies any incorrect rental declarations. This helps to create an effective system to monitor lessees and determine whether they comply with the terms set out in the rental contract. It also provides accurate information to help promote transparent communication between the mall administration and the shops.
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