Select the key term that relate to single audits from the list that best matches with the following definition.

Options are:

Cognizant agency

Major programs

Material weakness

Oversight agency

1. Oversight agency 2. The federal agency that makes the predominant amount of direct funding to the nonfederal entity receiving less than $50 million in federal awards. A deficiency in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. An audit prescribed by federal law for state and local governments and not-for-profit organizations that expend more than $750,000 in a fiscal year. Material weakness 3. 4. Used by auditors to determine which programs will be audited as part of the single audit. A monetary item identified by an auditor in an audit finding that generally relates to noncompliance with a law, regulation, or 5. agreement, where the costs are either not supported by adequate documentation or appear unreasonable