Internal Control: How misleading information and bad management can affect financial statements and its taxation.

Abstract

This project is about internal control and how it may be used inside small and medium-sized enterprises (SME). The research conducted at this type of firm can help to define internal control procedures, analyse the control systems, and issue an opinion on the financial statements' integrity, and how those controls can affect taxation. This study highlights the importance of a straightforward approach when it comes to taxation such as VAT and Corporate Tax. Some operations, such as registering invoices or expenditure receipts, are sometimes overlooked. Most of the time, this is overlooked by people who are unaware of the significance of tracking these charges. And it is at this point that it becomes intriguing to integrate efficient management with internal process control, allowing reports to be trusted due to their veracity. Financial Statements are essential in a business setting since they give information about the company's performance and position in comparison to other rivals. The importance of bookkeeping and how it is done may have a favourable or bad impact on outcomes and, as a result, their taxation.