Which board defines GAAP specifically for state and local government entities?

The Governmental Accounting Standards Board (GASB) is the authoritative body that establishes generally accepted accounting principles (GAAP) specifically for state and local government entities. GASB develops accounting and financial reporting standards that are intended to enhance the quality of financial reporting and provide useful information to users, such as public officials, investors, and the general public. This standard-setting is crucial for ensuring transparency, consistency, and accountability in the financial practices of governmental entities.

Other organizations mentioned focus on different aspects of accounting: the Federal Accounting Standards Advisory Board is concerned with federal governmental accounting standards, the Financial Accounting Standards Board sets standards for private sector entities, and the Government Accountability Office oversees the auditing of government agencies but does not set accounting principles. Therefore, GASB is the correct choice for defining GAAP related specifically to state and local governments.