Final answer:
Federal agencies are primarily responsible for monitoring the audit process and resolving findings and questioned costs under the Single Audit Act of 1984. State agencies, local governments, and non-profit organizations are also involved, especially when federal funds are provided.
Step-by-step explanation:
Under the Single Audit Act of 1984, primarily federal agencies are required to monitor the audit process and resolve findings and questioned costs. This responsibility also extends to other entities depending on the specific circumstances of the funding and the stipulations of the grants or funding provided. According to the Act, the entities that generally have the duty to follow up on audit findings include state agencies, local governments, and non-profit organizations, especially when they receive federal funds. This oversight is part of a broader system of checks and balances designed to ensure that public funds are being used appropriately and efficiently. For nonprofits, for instance, the board of directors is expected to oversee the auditing process, but when federal funds are involved, the federal agencies often take a leading role in ensuring compliance with the Single Audit Act.