Beautiful Shoes Inc. is a high-end ladies shoe store. It has recently expanded its operations and signed a long-term lease in a popular shopping centre. The owner, Beverly Hung, is concerned because the lease agreement requires that she submit to the landlord a percentage of her gross sales at the end of the calendar year. The lease indicates she must also provide a report on the gross sales. This report should have an assurance report attached. Beverly has no idea what this means or how she will come up with such a report. She has asked you, her CPA, to explain what may be required. 

Required

Explain to Beverly what is needed to satisfy the requirements of the new lease agreement.