Inadequacy of Accounting Records And Poor Budgetary Planning: A Threat To Entity’s Going Concern

Ondo State Is Known To Be Predominantly An Agro – Allied Based, Engaging In Agricultural Activities Such As Cocoa Production, Timber, Fishery And To A Little Extent Palm Kernel. Of All These, Cocoa Production Occupies The Central Position. Cocoa Activity Is A Major One In Ondo State Creating Employment Opportunities And Incomes For Both The Government And Individuals Engaged In It. However, A Cursory Observation Indicates That A Significant Number Of Licensed Buying Agents (Lba’s) Engaging In Cocoa Trading Discontinued With It While Some Even Go Bankrupt After Four To Five Years Of Their Trading Due To Accumulation Of Debts. This Paper Examined Cocoa Marketing /Trading Activity In Idanre With A View To Determining Causes Of Failure Among Cocoa Traders. The Research Was A Case Study, Survey Design While The Analysis Follows The Empirical Causal Design. Data For The Study Were Derived From One Hundred And Fifty (150) Structured Questionnaire Administered On Selected Lba’s And Public Officials Responsible For Controlling Cocoa Business Activity In The Area. The Selection Was Made Using Purposive Random Sampling. However, Only One Hundred And Thirty One (131) Were Retrieved. Other Data Were Obtained From Government Records, Publications And Internet Among Others. The Study Made Use Of Both Descriptive And Empirical Analysis. The Descriptive Analysis Employs The Use Of Tables And Charts To Describe The Characteristics Of The Responses In The Questionnaire While The Empirical Study Uses The Method Of Pooled Data Regression To Analyse The Relationship. The Paper Revealed That There Is A Statistical Significance Between Inadequate Accounting Records, Poor Budgetary Planning And Going Concern Threats. The Paper Recommends The Application Of Proper Records Keeping As A Panacea For Going Concern Threats. Also, There Is A Need For Sound Budgetary Planning To Serve As A Framework Through Which The Trading Activities Could Be Tracked, Directed And Monitored.