T The research conducted by the author over a period of two months at pt menara cakra mandiri indicated that the company\\\'s internal control system was not operating in accordance with applicable accounting standards and tax regulations. the implementation of accounting activities, which should have complied with the prevailing accounting standards, particularly in relation to the recording of revenue transactions through proper journal entries, was neglected by the tax and accounting department due to weaknesses in the company\\\'s internal control system.as a result, during the tax audit conducted by the west jakarta medium tax office two (kpp madya jakarta barat dua), as stated in audit report no. s-00348/riksis/kpp.0512/2024, several deficiencies were identified in the recording of sales journal entries in the company\\\'s general ledger. the tax and accounting department recognized expenses incurred throughout the 2022 fiscal year but failed to recognize cash receipts deposited into the company\\\'s bank account as sales revenue.this condition indicates that the tax and accounting department lacked an adequate understanding of the fundamental principles of accounting. furthermore, the absence of proper review and verification procedures over accounting activities resulted in errors in journal entries. these deficiencies caused the company to understate its sales transactions involving pt hbl, leading to non-compliance with tax regulations.consequently, the company was assessed additional tax liabilities and administrative penalties by the tax authorities. the total amount of tax assessed and still payable was idr 1,683,746,477.