An important problem faced by auditors is gauging how much reliance can be placed on the accounting systems that process millions of transactions to produce the numbers summarized in a company's financial statements. In a complex accounting system, it can be an extremely difficult task for the auditor to anticipate the possible errors that can occur and evaluate the effectiveness of the controls at detecting them. An accurate analysis must take into account the unique features of each company's business processes. An auditor uses COMET to create a hierarchical flowchart model that describes the intended processing of business transactions by an accounting system and the operation of its controls.

An important problem faced by auditors is gauging how much reliance can be placed on the accounting systems that process millions of transactions to produce the numbers summarized in a company's financial statements. Accounting sys-ems contain internal controls, procedures designed to detect and correct errors and irregularities that can occur in the processing of transactions. In a complex accounting system, it can be an extremely difficult task for the auditor to anticipate the possible errors that can occur and evaluate the effectiveness of the controls at detecting them. An accurate analysis must take into account the unique features of each company's business processes. To cope with this complexity and variability, the COMET system applies a model-based reasoning approach to the analysis of accounting systems and their controls. An auditor uses COMET to create a hierarchical flowchart model that describes the intended processing of business transactions by an accounting system and the operation of its controls. COMET uses the constructed model to automatically analyze the effectiveness of the controls in detecting potential errors. Price Waterhouse auditors have used COMET on a variety of real audits in several countries around the world.

(Caldwell 1994). One role is as an complexity of business organizations, billing for goods and services. An intriguing question raised fine-grained predictions about agents' about organizational structures, repeatedly in the course of the workshop reactions to different proposed organizational others will require the representation was whether modeling tools designs. of time and state, and so on. Sheet metal doesn't a changing business process; in particular, care how it is used or even Implementing changes in an organization that they use to make their decisions.

Automated diagnosis is an important AI problem not only for its potential practical applications but also because it exposes issues common to all automated reasoning efforts and presents real challenges to existing paradigms. Current research in this area addresses many problems, including managing and structuring probabilistic information, modeling physical systems, reasoning with defeasible assumptions, and interleaving deliberation and action. Furthermore, diagnosis programs must face these problems in contexts where scaling up to deal with cases of realistic size results in daunting combinatorics. This article presents these and other issues as discussed at the First International Workshop on Principles of Diagnosis.

Automated diagnosis is an important AI problem not only for its potential practical applications but also because it exposes issues common to all automated reasoning efforts and presents real challenges to existing paradigms. Current research in this area addresses many problems, including managing and structuring probabilistic information, modeling physical systems, reasoning with defeasible assumptions, and interleaving deliberation and action. Furthermore, diagnosis programs must face these problems in contexts where scaling up to deal with cases of realistic size results in daunting combinatorics. This article presents these and other issues as discussed at the First International Workshop on Principles of Diagnosis.