Audit Services
Our Audit Services include Finance and Operating reviews -according to agreed procedures with our customers- in FIVE main areas:
Turnover Review
We develop our work and we apply procedures with the aim of:
- Adding value to ongoing bonus negotiations (rent reduction)
- Contributing to a reliable and accurate turnover indicator for the Shopping Center.
- Contributing to a more accurate knowledge of the theoretical/objective rent of shops based on audited turnover.
- Increasing the value of the Shopping Centre: to obtain the real level of the turnover and a greater profitability of the Shopping Centre, adjusting the Rates of Effort of the tenants.
Turnover Verification
- For the owners of Shopping Centers, we offer a service of checking the turnover through the monitoring of the Point of Sale Terminal (POS).
- The objective is to know, exactly, the volume of real sales made by the tenant in a given period and its consistency with previous periods.
- We analyze significant ratios, such as the percentage of cash/card sales compared to the KPI´s of our database, and we identify anomalous aspects in sales.
In our Cash Audits we have detected a significant number of cases where:
- The real sales volume was much higher than the sales volume reported.
- The cash sales ratio was substantially higher than that reported in previous periods.
Operating Cost Review
- To review the certified income and operating expenses included in the income statement of the businesses corresponding to the shops of the Shopping Center.
- We will carry out a review of the income:
- Online sales
- Online Returns
- Delivery sales
And the most significant operating expenses:
- Staff
- Supplies
- Rent
- Other operating expenses
- As a result of this review, we will issue a report which will highlight any possible accounting incidents arising from our process of reviewing operating expenses.
Business Operations Review
Our goal is to analyze and detail the daily performance of the local business, identifying its operational weaknesses. The proposed scope will depend on the type of business and the procedures to be analyzed in agreement with the lessor.
Some of the procedures used to analyze the business are the following:
- Sales control through Mystery Shopper procedure
- Staff Control
- Commodity in store
- Operations and control systems management
- Marketing and commerce
- Competitive advantages or disadvantages
- Analytical review of the income statement.
Other Professional Services
- Review of Community Owners Financial Statements
We agreed with the Community of Owners a series of procedures for the review and verification of the Financial Statements:
- Balance Sheet Accounts
- Profit and loss accounts.
- Explanatory Notes
In addition, we also carry out deviation analysis and follow up of the budget of the Community of Owners.
- Help in the Selection of Tenants for the turnover audit
- Review of the Lease Contract identifying improvements in the penalty clauses for the lease contract:
- Online sales figures definition clause
- Necessary Penalties Clause
- Internal Control Analysis, review the correct performance of the tenant's internal control