This paper presents development and application of ATM Conformance Test System (ACTS), an automated test system for ATM protocols. ACTS is a test system that checks conformance of ATM terminal and network equipment implementing either ITU-Tor ATM Forum user-network interface. This paper, after presenting the methodology and process used for developing ACTS, conducts case studies of its applications to real ATM equipment. By applying ACTS, we were able to detect numerous problems in protocol implementations of ATM equipment and analyze causes of the problems, thereby demonstrating the efficacy of ACTS as an efficient automated testing tool. Furthermore, by predicting the potential effects of the problems on interoperability, we show how ACTS can be used as a useful tool for ensuring interoperable ATM equipment.