Cognizant agencies are assigned to each nonfederal agency expending more than $50 million of federal funds per year. Their role is to oversee and verify that the agency is using the funds appropriately and in compliance with regulations. They are not responsible for conducting government single audits or issuing Government Auditing Standards. They are sometimes referred to as oversight agencies.

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Cognizant Agencies

Question 57

Multiple Choice

Cognizant agencies:

A) Are responsible for conducting government single audits.
B) Are assigned to each nonfederal agency expending more than $50 million of federal funds per year.
C) Are also referred to as oversight agencies.
D) Are responsible for issuing Government Auditing Standards.

Correct Answer: