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This document discusses ratio estimation and difference estimation techniques used in audit sampling. Ratio estimation uses the ratio of misstatements in a sample to the book value of sample items to project misstatements to the entire population. Difference estimation uses the average difference between audited and book values in a sample to estimate the total difference for the population. Ratio estimation is best when misstatement sizes are proportional to book values. Difference estimation works bet

Author
hoxhii
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