The International Accounting Standards Board (IASB)

A

The Financial Accounting Standards Board.

The correct answer to the question is A. The Financial Accounting Standards Board (FASB).

The FASB is presently responsible for establishing accounting standards in the United States. It is an independent, private-sector organization that was established in 1973. The primary purpose of the FASB is to develop and improve financial accounting and reporting standards, which are followed by public companies, private companies, and nonprofit organizations in the United States.

The FASB operates under a transparent and inclusive process that involves input from various stakeholders, including investors, preparers of financial statements, auditors, and other interested parties. The FASB sets accounting standards through a rigorous due process that includes research, deliberations, public exposure of proposed standards, and the consideration of public feedback.

It is important to note that while the FASB has the authority to establish accounting standards, its standards must be approved by the Securities and Exchange Commission (SEC) before they become effective for public companies. The SEC is a government agency responsible for protecting investors, maintaining fair and efficient markets, and facilitating capital formation. The SEC oversees financial reporting and disclosure requirements for public companies and has the authority to prescribe accounting principles.

Option B, the FDA (Food and Drug Administration), is not responsible for establishing accounting standards. The FDA is a regulatory agency within the U.S. Department of Health and Human Services, and its primary focus is on ensuring the safety and effectiveness of food, drugs, medical devices, vaccines, and other products.

Option C, the Securities and Exchange Commission (SEC), is involved in the approval process of accounting standards established by the FASB but is not responsible for establishing the standards themselves. The SEC's role is to protect investors and maintain fair and efficient markets by overseeing financial reporting and disclosure requirements for public companies.

Option D, the Internal Revenue Service (IRS), is responsible for administering and enforcing federal tax laws in the United States. While the IRS has guidelines and regulations related to tax accounting, it is not responsible for establishing broader accounting standards.

Option E, the Federal Accounting Society Board of Directors, is not a recognized entity responsible for establishing accounting standards. It is likely a fictitious name created for the exam question.

In summary, the correct answer is A. The Financial Accounting Standards Board (FASB), which is presently responsible for establishing accounting standards in the United States.