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This paper is focused on multiple fault diagnosis of analogue AC circuits and brings an algorithm for identification of the faulty elements and evaluating their values. The algorithm adapts some earlier developed ideas to AC circuits. It exploits the phasor concept and sensitivity calculations in the frequency domain. The algorithm needs only two accessible test nodes, one for excitation and one for measurements. Also a modification of the approach is proposed, enabling us to perform multiple fault diagnosis of some class of nonlinear circuits using the small signal approach. Three numerical examples illustrating all aspects discussed in this paper are given.