The American Accounting Association (Aaa) Model

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The American Accounting Association (AAA) model The American Accounting Association model provides a framework within which an ethical decision can be made. The seven question in the model are: (1) Establishing the facts of the case. This step means that when the decision-making process starts, there is no ambiguity about what is under consideration. (2) Identify the ethical issues in the case. This involves examining the facts of the case and asking what ethical issues are at stake. (3) An identification of the norms, principles, and values related to the case. This involves placing the decision in its social, ethical, and, in some cases, professional behaviour context. In this last context, professional codes of ethics or the social expectations of the profession are taken to be the norms, principles, and values. For example, if stock market rules are involved in the decision, then these will be a relevant factor to consider in this step. (4) Each alternative course of action is identified. This involves stating each one, without consideration of the norms, principles, and values identified in Step 3, in order to ensure that each outcome is considered, however appropriate or inappropriate that outcome might be. (5) Matching norms, principles, and values to options The norms, principles, and values identified in Step 3 are overlaid on to the options identified in Step 4. When this is done, it should be possible to see which options accord with the norms and which do not. (6) The consequences of the outcomes are considered. Again, the purpose of the model is to make the implications of each outcome unambiguous so that the final decision is made in full knowledge and recognition of each one. (7) The decision is

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