A federal agency that has the responsibility for implementing the requirements for single audits for a particular state or local government is a(n):
A) conscious agency.
B) cognizant agency.
C) sentient agency.
D) perceptive agency.
E) observant agency.

Question

Quizplus · Accepted Answer

The correct term is "cognizant agency." This refers to the federal agency designated to carry out the oversight responsibilities for an audit of a state, local government, or non-profit organization. The cognizant agency ensures that these entities adhere to the requirements of single audits, which are audits of a single set of financial statements but include multiple federal awards.

A Federal Agency That Has the Responsibility for Implementing the Requirements