Which body is effective in advising on federal accounting standards?

The Federal Accounting Standards Advisory Board (FASAB) plays a crucial role in advising on federal accounting standards. Established to improve federal financial reporting, FASAB is responsible for setting accounting standards for federal entities. Its primary mission is to ensure that the financial information provided to stakeholders, including Congress and the public, is relevant and reliable. By developing comprehensive guidelines, FASAB facilitates consistent and transparent financial reporting across federal agencies, enhancing accountability and decision-making.

In contrast, while the Financial Accounting Standards Board (FASB) focuses on private-sector financial reporting and accounting standards, it does not address the specific needs and requirements of federal accounting. The General Accounting Office (GAO) audits government expenditures and evaluates the effectiveness of government programs rather than setting accounting standards. The Government Auditing Standards Board (GASB) specifically deals with state and local governmental accounting and does not cover federal standards directly. Thus, FASAB stands out as the authoritative body for advising on accounting standards applicable to the federal government.