Entity
An organization or unit that operates as a distinct legal or management structure.
An entity is a company, organization, or defined operating unit that has its own objectives, systems, and responsibilities.
In audits and compliance documentation, it’s important to be clear which entity is in scope. For example, a SOC 2 report typically covers a specific entity and the systems it operates.
Large organizations may define multiple entities based on legal structure, lines of business, or geography.