What three agencies established the FASAB and most affect the decisions of DoD financial managers?

What three agencies established the FASAB and most affect the decisions of DoD financial managers?

• A. OMB, GAO, and Treasury
• B. OMB, DoD, and Treasury
• C. GAO, Treasury, and DoD
• D. DoD, OMB, and GAO

Answer: (A)

FASAB was established by three federal leaders—GAO, the Office of Management and Budget (OMB), and the Department of the Treasury. These agencies jointly created the federal accounting standards for the government, and they continue to influence how financial information is prepared and reported across all departments, including the DoD. Because these three bodies set the standards that DoD financial managers must follow, they have the most impact on DoD accounting decisions. DoD is a major user of FASAB standards rather than a founder, so options that include DoD as a founder (or omit one of the founding agencies) don’t fit.

FASAB was established by three federal leaders—GAO, the Office of Management and Budget (OMB), and the Department of the Treasury. These agencies jointly created the federal accounting standards for the government, and they continue to influence how financial information is prepared and reported across all departments, including the DoD. Because these three bodies set the standards that DoD financial managers must follow, they have the most impact on DoD accounting decisions. DoD is a major user of FASAB standards rather than a founder, so options that include DoD as a founder (or omit one of the founding agencies) don’t fit.