Which entity typically oversees the Financial Accounting Standards Board (FASB)?

The correct answer is the Financial Accounting Foundation, which plays a crucial role in overseeing the Financial Accounting Standards Board (FASB). The Foundation is responsible for providing the necessary resources and governance to ensure that FASB can effectively establish and improve financial accounting and reporting standards that enhance the usefulness of financial information. This oversight includes appointing the members of FASB and ensuring that the organization's mission and activities align with the broader goals of fostering transparency and consistency in financial reporting.

In contrast, the federal government does not operate FASB directly, nor is it primarily involved in day-to-day accounting standards activities. The American Institute of CPAs, while an influential body in the accounting profession, serves a different purpose related to the interests of CPA professionals rather than overseeing the standard-setting processes of FASB. The Securities and Exchange Commission, a key regulatory authority, does influence financial reporting and may endorse FASB standards, but it does not oversee the organization itself. The Financial Accounting Foundation is specifically established to provide governance and oversight to FASB, making it the appropriate choice.