In accordance with the turnover reporting provisions stipulated in the lease agreement, tenants are required to submit their monthly gross turnover figures for the relevant accounting period to the landlord. If your retail shop, restaurant, or commercial premises located in a shopping mall requires a certified turnover report for rental calculation purposes, V CPA Limited can assist in arranging the necessary audit and certification services.
Our independent Certified Public Accountants (Practising) will review the relevant sales records, accounting books, and supporting documents, and issue a Turnover Certificate Report to verify the reported gross turnover for the specified period. The report helps ensure compliance with lease requirements and provides landlords and property management companies with an independent confirmation of turnover figures used for calculating turnover rent or percentage rent.
Gross Turnover Audits are commonly required for:
- Retail shops located in shopping malls
- Restaurants and food & beverage outlets
- Department store counters and concessionaires
- Retail chain stores
- Supermarkets and convenience stores
- Fashion and lifestyle retailers
- Beauty salons and personal care businesses
- Fitness centres and recreational facilities
- Airport, MTR and transportation hub retail outlets
- Tenants whose rental payments are based on turnover rent or percentage rent arrangements
Where a lease agreement requires the submission of a certified turnover statement, the tenant will generally need to engage an independent Certified Public Accountant (Practising) to verify the turnover figures and issue a Turnover Certificate Report. The report serves as independent confirmation of the revenue reported and is commonly used for turnover rent or percentage rent calculations required under the lease agreement.
Purpose of a Gross Turnover Audit
A Gross Turnover Audit or Turnover Certificate Report is a special-purpose assurance engagement designed to verify the turnover figures reported by a business for a specified period. The report is commonly required under lease agreements where rent is calculated based on turnover or sales revenue.
The main objectives of a Gross Turnover Audit are to:
✅ Verify the turnover figures submitted to landlords or property management companies;
✅ Ensure compliance with lease agreement requirements;
✅ Support the calculation of turnover rent or percentage rent;
✅ Enhance the reliability and credibility of reported sales figures;
✅ Confirm consistency between turnover declarations and accounting records;
✅ Minimize disputes relating to rental calculations;
✅ Provide independent certification by a Certified Public Accountant (Practising).
The auditor will review accounting records, POS sales reports, bank records, and supporting documents to verify that the reported turnover is accurate, complete, and in accordance with the lease requirements.
Gross Turnover Audit Fee Schedule
V CPA Limited provides Independent Auditor’s Turnover Certificate Reports for submission to private shopping malls, landlords, property management companies, and the Hong Kong Housing Department, in accordance with lease agreement requirements.
Our audit fees are charged based on the gross turnover amount covered by the Turnover Certificate Report, as follows:
| Gross Turnover Amount | Audit Fee |
|---|---|
| Up to HK$3,000,000 | HK$3,000 per report |
| Above HK$3,000,000 and up to HK$10,000,000 | HK$6,000 per report |
| Above HK$10,000,000 | HK$10,000 per report |
The Turnover Certificate Report is prepared and issued by an Independent Auditor of V CPA Limited following a review of the Company’s turnover records and supporting documentation.
V CPA Limited has extensive experience in conducting Turnover Certificate Report audits. To arrange the audit engagement and report issuance, payment must be settled prior to the commencement of the audit work.
———————————————————————————————-
If you require a Turnover Certificate Report audit engagement, please provide the following information:
___________________________________________________________
Payment Methods
We accept payment by Bank Transfer, Cheque, or Faster Payment System (FPS).
Bank Transfer Details
Bank Name: HSBC Hongkong and Shanghai Banking Corporation Limited (HSBC)
Bank Code: 004
Account Name: V CPA LIMITED
Account Number: 747-033678-838
Payment by Cheque
Please make the cheque payable to:
“V CPA Limited" or “文森會計師有限公司"
and mail it to:
Unit 1, 11/F, Wah Po Centre
42 Hung To Road
Kwun Tong, Kowloon
Hong Kong
Faster Payment System (FPS)
FPS ID: 163371743
FPS Email: service@hkvcpa.com
After payment has been made, please email the payment receipt to assurance@hkvcpa.com or WhatsApp it to us for verification and audit arrangement.
____________________________________________________
Turnover Certificate Report (Gross Turnover Audit)
Monthly Turnover Reporting Required Under Lease Agreements
Many lease agreements for retail shops, restaurants, and commercial premises require tenants to submit monthly gross turnover figures to the landlord during the relevant accounting period. If your business operates in a shopping mall and requires a certified turnover report for rental calculation purposes, V CPA Limited can assist with the necessary audit and certification arrangements.
The reported turnover is subject to audit by an independent auditor. The auditor responsible for issuing the report must be a Certified Public Accountant (Practising) registered under the Hong Kong Professional Accountants Ordinance (Cap. 50). Upon completion of the audit procedures, a Turnover Certificate Report will be issued.
A Gross Turnover Audit or Turnover Certificate Report is a special-purpose audit engagement conducted in accordance with the requirements of the lease agreement. The audit involves an independent review of the tenant’s reported gross turnover and supporting records to verify the accuracy and completeness of the turnover figures submitted to the landlord or property management company.
The objective is to provide independent assurance that the turnover declarations fairly reflect the actual gross sales generated during the reporting period.
Pre-Audit Document Checklist
To facilitate an efficient audit process, businesses are encouraged to prepare the following documents in advance:
1. Lease Agreement
The lease agreement serves as the foundation of the turnover audit. The auditor will review the lease terms to determine:
- Definition of gross turnover
- Categories of revenue required to be reported
- Excluded items (e.g. refunds, discounts, rebates)
- Reporting period requirements
- Rental calculation methodology
- Specific certification requirements
2. System-Generated Sales Reports (POS Reports)
Businesses should provide:
- Daily sales reports
- Monthly sales reports
- Detailed POS transaction records
- Sales summary reports
- Refund and discount records
These reports should be generated directly from the POS system to ensure completeness and traceability.
3. Turnover Reports Previously Submitted to the Landlord
Examples include:
- Monthly Turnover Reports
- Sales Declaration Forms
- Gross Sales Statements
The auditor will compare these submissions against the underlying accounting records to ensure consistency and accuracy.
4. Bank Statements
The auditor may perform sample checks on:
- Cash deposit records
- Credit card settlement records
- Electronic payment receipts
- Banking records and deposits
These procedures help assess the reasonableness of the reported turnover figures.
5. Accounting Records and General Ledger
Supporting accounting records may include:
- Sales Ledger
- General Ledger
- Trial Balance
- Financial Statements
These documents form the basis of the audit verification process.
6. Electronic Payment Platform Settlement Reports
Examples include:
- Visa
- Mastercard
- UnionPay
- Alipay
- WeChat Pay
- Octopus
- Faster Payment System (FPS)
The auditor may compare settlement amounts with recorded sales transactions to verify consistency.
Frequently Asked Questions
Is a Turnover Certificate Report the same as a statutory audit report?
No.
A statutory audit report expresses an opinion on a company’s financial statements as a whole. In contrast, a Turnover Certificate Report is a special-purpose assurance engagement that focuses solely on verifying turnover figures required under a lease agreement.
If my company has already completed its annual audit, do I still need a Turnover Certificate Report?
Possibly.
If the lease agreement specifically requires a certified turnover report issued by an independent Certified Public Accountant (Practising), a separate Turnover Certificate Report may still be required even if the annual statutory audit has already been completed.
How long does a Turnover Certificate Report engagement usually take?
The completion time depends on the number of outlets, transaction volume, and completeness of the supporting documentation.
In most cases, where the required documents are readily available and complete, the audit can be completed within a few working days to two weeks.
Professional Services Provided by V CPA Limited
V CPA Limited is a Hong Kong CPA (Practising) firm with extensive experience in turnover reporting engagements. We provide professional certification services for shopping mall tenants, retailers, restaurants, and commercial tenants, including:
- Turnover Certificate Report
- Gross Turnover Audit
- Revenue Verification Report
- Agreed-Upon Procedures Report
- Accountant’s Certificate
We assist clients in complying with lease requirements and meeting reporting obligations imposed by landlords, property management companies, shopping malls, and government authorities.
Certified Turnover Certificate Report Services by Independent Auditors
V CPA Limited provides independent audit and certification services for businesses requiring professionally certified turnover reports for rental calculation, lease compliance, and reporting purposes.
