The problems associated with the transition from the secondary level to the tertiary level in education have given rise to many surveys, analyses of statistics, research projects, reports and literature reviews. Much has been written on topics such as testing, selection, prediction and wastage, with findings and conclusions which appear to have varying degrees of relevance to contemporary problems in Victoria. This literature review does not attempt to discuss or even list every article ever published in this area. It does attempt to define a limited area in terms of those aspects which seem more relevant to the circumstances of the present problem. Some early studies are discussed in relation to the changing perspectives and the historical developments in methods of analysis and suggested solutions. Overseas studies have been selected when their findings have been general and transferable to the current Victorian situation, or when they have appeared to influence other important investigations. Although some non-congnitive studies are reviewed, the general emphasis is on studies dealing with cognitive factors in testing and selecting. (Author/RC)