Deciding equivalence between two programs (called a source and a target program) is often reduced to finding a simulation relation between them. This is computationally expensive and often requires a manual guidance. In this paper, we propose an abstraction-refinementguided approach, called SimAbs, to automatically construct a simulation relation between the source program and an abstraction of the target program. In our approach both the abstraction and the simulation relation are discovered automatically, and deciding whether a given relation is a simulation relation is reduced to deciding validity of a ∀∃-formula. We present a novel algorithm for deciding such formulas using an SMTsolver. In addition to deciding validity, our algorithm constructs a witnessing Skolem relation. These relations enable the refinement-step of SimAbs. We have implemented SimAbs using UFO framework and Z3 SMT-solver and applied it to finding simulation relations between C programs from the Software Verification Competition. Our empirical results show that SimAbs is efficient at finding a simulation relation. Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number.