Abstract
To present and compare the financial reporting control situation between Kazakhstan and Japan, and to disclose methods of detecting and preventing distortions in financial statements that can be used to ensure the integrity and accuracy of doing business. A literature study using bibliometric analysis, including the identification of causes, ways, and methods to minimize distortions in companies' financial statements, a case study of companies in financial distress in Kazakhstan and Japan, and the use of the Beneish model for early identification of potential risks. The topics of scientific research on distortions in financial statements cover many aspects. Similar methods of assessing financial statements for distortions, as well as the Beneish model, can be applied in Kazakhstan and Japan. The main differences used in the internal assessment of reports include a different approach to the internal control system and the transparency system of financial data. Although it may still be challenging and somewhat unfair to compare two countries due to differences in economic development and systemic internal controls, there are shared methods for detecting financial statement misstatements used by companies in both. One such method is the Beneish M-Score, which has demonstrated its applicability in analyzing companies from both countries. The article outlines how to identify distortions in financial statements and take measures to prevent them using internal control methods, the influence of third-party factors, and the Beneish methodology.