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During the year 1990, Langenderfer and Rockness developed the different concepts of the American Accounting Association (AAA) model. AAA model provides the auditors with seven logical steps in order to deal with different ethical situation in auditing (Hope, Thomas & Vyas, 2013). It needs to be mentioned that the application of the seven-step model of AAA is required in the provided case of Great Gold Limited (GGL) to provide logical course of actions. The main area of concern of this case is related with the leasing of apportion of their machinery from Big Machine Limited (BML) in spite of the fact that there is availability of other machinery suppliers in the region supplying small portion of the machineries. Apart from this, another major ethical issue can be seen due to the increase in profit under the directorship of Brent Allen related with the leasing of significant part of the machinery. In this situation, it is required for the auditor to apply the seven step model of AAA to get recommended course of action (Yetman & Yetman, 2012).
Step 1: Facts Identification: This step involves in the identification of major facts with te concerned cases. In this particular situation, the major unethical case is related with the lease of large proportion of machinery to GGL by the director of the company in the presence of other small suppliers of machinery in that region (Kassem & Higson, 2012).
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