What is one key factor an auditor looks for when reconciling simulation outputs?

When an auditor is reconciling simulation outputs, a crucial aspect they focus on is the discrepancies between expected and actual results. This process involves comparing the results of simulations against predetermined benchmarks or expectations to identify any significant deviations. Such discrepancies can indicate potential issues in data integrity, assumptions made during the simulation, or even flaws in the underlying processes or systems that generated the data.

Identifying these discrepancies is essential because they can point to areas that require further investigation, which can lead to improved accuracy and reliability in financial reporting and operational efficiency. Understanding where and why these differences occur allows auditors to provide valuable insights and recommendations to enhance the organization’s overall accounting information systems. By addressing discrepancies, organizations can ensure that their simulations are not only accurate but also reflective of real-world scenarios, which is vital for effective decision-making.