Source Documents and Credibility of Financial Reports in the Accounting Cycle

Abstract

The study examined source documents with authenticity of the financial statements in accounting cycle. Exploratory survey design was adopted because there are few studies to refer to. This study covered Sixty (60) employee of Finance and Supply, Budget and Planning Accounts and Audit unit of (Cocoa Products (Ile-Oluji) Ltd and Ile-Oluji Oke-igbo LGA). The total number of respondents responded were 48. The appropriate number of staff was selected from the population using (Taro Yamani formula). Data collected through the use of questionnaire were presented and analyzed with table of frequency and simple percentage method as the descriptive statistics pattern chosen. Chi-square estimation method was employed for the Hypotheses test. With reference to the practical nature of Accounting and the contributions of various scholars to the pool of knowledge, it was discovered that source documents served as an important tool for the Accounting processes which added to the credibility of the financial statements. It was concluded that, if the identification of genuine source documents is jettisoned, accounting procedures cannot be completed, this buttresses the fact that source documents have a great positive impact on financial reports, if properly identified and recorded. There is relationship between genuine source documents and authenticity of the statements of account in accounting cycle. This study recommends among others that Accountants of organizations should take much cognizance of genuine source documents and post transactions to relevant prime books in order to ascertain how genuine and credible the financial statements and activities of an organization can be. Key words: Source Documents, Credibility, Financial Reports, Accounting Circle Journal Reference Format: Ibo, S. A., Akindutire, S.O. & Omole, I.I. (2023): Source Documents and Credibility of Financial Reports in the Accounting Cycle. Humanities, Management, Arts, Education & the Social Sciences Journal. Vol. 12. No. 1, Pp 1-16 www.isteams.net/humanitiesjournal. dx.doi.org/10.22624/AIMS/HUMANITIES/V12N4P1