• MEAN PER UNIT ESTIMATION- A classical variables sampling technique

that projects the sample average to the total population by multiplying the
sample average by the number of items in the population.
• DIFFERENCE ESTIMATION- A classical variables sampling technique that
uses the average difference between audited amounts and individual
recorded amounts to estimate the total audited amount of a population
and an allowance for sampling risk.
• RATIO ESTIMATION- A classical variables sampling technique that uses the
ratio of audited amounts to record amounts in the sample to estimate the
total amount of the population and an allowance for sampling risk.
Rachelle I. Tusi
Conditions for using difference and ratio estimation:
1. Each population item must have a recorded book value.
2. Total population book value must be known.
3. Expected differences between audited and recorded book values must not be
too rare.

Choosing between difference and ratio estimation

Ratio estimation is more appropriate when the differences are nearly

proportional to book values.Differences estimation is more appropriate
when there is little or no relationship between the absolute amounts of
the differences and the book values. Maries Llamelo
PROBABILITY-PROPORTIONAL-TO-SIZE-SAMPLING (PPS)

PPS uses a peso as the sampling unit.

•
• PPS sampling gives each individual peso in the population an equal chance
of selection
• PPS is only useful for TESTS OF OVERSTATEMENTS since the sample
selection method dictates that the larger the transaction or amount, the
more likely that it will be selected.
•
Roma Cruz
• PPS is inappropriate for testing liabilities because understatement is the
Examples of Factors Influencing
Sample Size for Test of Control
Rafael Barbin
Shannen Ildefonso