What does the Financial Accounting Standards Board primarily focus on?

The Financial Accounting Standards Board (FASB) is primarily focused on establishing accounting principles. This is crucial because FASB develops and updates the Generally Accepted Accounting Principles (GAAP) which are essential guidelines that govern financial reporting in the United States. These principles ensure that financial statements are consistent, comparable, and transparent, providing a reliable basis for stakeholders, including investors, creditors, and regulators, to make informed decisions.

By concentrating on the establishment of these accounting standards, FASB plays a critical role in the overall financial reporting framework and maintains the credibility and accuracy of financial information prepared by organizations. This is vital for maintaining investor confidence and ensuring the efficient functioning of markets. Other options mentioned, such as investigating audit practices or regulating stock markets, fall outside the core responsibilities of FASB, emphasizing its specific focus on accounting standards rather than broader regulatory functions.