> For the complete documentation index, see [llms.txt](https://engyon.gitbook.io/engyon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://engyon.gitbook.io/engyon/en/reference/group-audits/audit-units.md).
# audit units
On Settings → audit units users can create group components as audit units and record auditor relationships. In Engyon group audits consist of audit units. An audit unit corresponds to a group component, as defined in standard 600.14: ‘*entity, business unit, function or business activity, or a combination thereof, determined by the Auditor for purposes of planning and performing audit procedures in a group audit.'*
Often a group is organized based on legal entities and an audit unit will consist of one or more legal entities within a group. Therefore, it is possible within Engyon to create audit units for the legal entities created within the client. To do this, go to Settings --> audit units in the Engyon audit. Here you will find an overview of the audit units created in the audit.
You do not change the name of an audit unit in this overview. Open the audit unit via the icon (network, :network-wired:) and go to Settings. Under Details you will find Name. Click on the name, with the correct rights, just like with the name of an audit. The name in this overview will then also be updated.
Under the heading 'Create audit units for legal entities' you will find the legal entities for which no audit unit has been created yet. Click on the plus sign next to the legal entity to create an audit unit for it. In the 'create audit unit' menu you can select multiple legal entities if you also want to include them in the relevant audit unit. Only legal entities that have not yet been included in another audit unit are visible here because a legal entity can only be included in one audit unit.
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When Scope is locked, you cannot add an audit unit. Unlock the scope first with Unlock scope.
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Which legal entities belong to an audit unit is chosen only during creation. Merging afterwards is not possible. Do you already have separate audit units and do you want to have those entities in one audit unit? Delete the existing audit units with the icon (trash can) :trash:if there is still little work in them. Then create one audit unit and select the entities together. The trash can schedules the deletion: the audit unit gets the tag deletion scheduled and is gone after 7 days. Another user with client manager on that client sees the icon (`delete immediately`) :dumpster-fire:on that tag and removes the audit unit immediately. The person who started the deletion cannot do this themselves. You delete a coupled audit via the client. After that you can delete the audit unit or set it out of scope.
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When creating an audit unit, you choose under 'auditor relationship' from:
* Auditor: when the audit procedures of the audit unit are performed by or under the responsibility of the Auditor
* inter office: when the audit procedures of the audit unit are performed by or under the responsibility of another (component) auditor of the same audit firm or audit network as the Auditor.
* inter firm: when the audit procedures of the audit unit are performed by or under the responsibility of a (component) auditor of another audit firm or audit network than the Auditor.
When you choose 'inter office' or 'inter firm', the switch 'Component auditor records procedures in this audit' appears. When you enable this\
option, certain procedures can only be performed by the component auditor.\
\
Functionally there is no difference between 'inter office' or 'inter firm', in both cases the following work steps are added per audit unit where 'inter office' or 'inter firm' applies:
1. Communication with the component auditor by means of audit instructions (initial risk assessment)
2. Confirmation and review of the deliverables for group components in the evaluation risk assessment (evaluation risk assessment)
3. Assessment of the audit instructions parent auditor (evaluation risk assessment)\
*This work step was created for the component auditor. By 'parent auditor' the Auditor is meant here. When the component auditor does not record his/her work in Engyon, then this work step can be marked as 'Not applicable' (top right in the work step) by the Auditor.*
4. Assessment of procedures performed by auditors of group components (general)
5. Reporting parent auditor\
*This also applies that this work step was written for the component auditor. By 'parent auditor' the Auditor is meant here. The work step is also applicable if the component auditor does not work in Engyon, only then you must read 'parent auditor' and 'Auditor' as 'component auditor'*
6. Subsequent events (general)
7. Evaluation of procedures performed by auditors of group components (general)
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**Adding legal entities**\
If legal entities that you do expect are not visible in the ‘audit units’ screen, then these have not yet been created under the client. Creating or changing entities can be done by the account manager and the admin at organization level, as well as by the client admin (see [rights & roles](/engyon/en/reference/settings/roles-and-permissions.md)). To do this, go to Options --> Organisation --> clients (top right) click on the relevant client and then on entity and the Entity button to add entities.
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After creating audit units it becomes possible to, among other things, couple materiality, risks, processes, procedures and findings to one or more audit units. With this you record in the audit which insights were gained per audit unit and what was subsequently done with those insights. If you need a separate auditor's report on an underlying entity, then that is not a breakdown within the group audit. See [Coupling audit](/engyon/en/reference/group-audits/linking-audits-and-procedure-steps.md).
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Because an audit unit often corresponds to one or more legal entities, audit units in Engyon are created from entities. Thus the coupling between ‘audit unit’ and ‘entity(ies)’ is fixed. However, when an audit unit is not organized based on legal entities, but for example based on business activities, geography, branches or divisions, causing one legal entity to fall into multiple audit units, you split the relevant legal entity into multiple fictitious entities (for example ‘Daughter 1 B.V. – branch 1’ and ‘Daughter 1 B.V. – branch 2’). These fictitious entities can then be coupled to the correct audit units.\
See the information block above for information on creating and adjusting entities.
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