ABSTRACT
Eric L. Kohler was born in Owosso, Michigan in 1892. He received the A.B. degree from the University of Michigan in 1914 and the M.A. degree from Northwestern University in 1915. Accounting texts mention the fact that there are the cash and accrual bases of accounting and that single-entry and double-entry methods may be employed, but do little to elaborate upon these topics as regards distinguishing between them. Treasury regulations require the taking of inventories and the reporting of them, while at the same time accounts receivable may be omitted. Federal income tax regulations have clarified the concept of income as it relates to stock investments. The Revenue Act of 1921 requires the proration of the cost of the securities surrendered among the several types of securities received in reorganization according to the relative market values of the securities received. The internal auditor should take an evaluative position with respect to the judgment exercised by management.
