Component

A component is an entity or business activity for which financial information is separately prepared and which is included in the group financial statements. A component is commonly a subsidiary but may also be a function, process, product, service, geographical location, or even an investment accounted for under the equity method [Accounting Tools].

The component is a part that combines with other parts to form something bigger [Cambridge Online Dictionary].

Sources:

Group Audit definition. Accounting Tools. Retrieved from: https://www.accountingtools.com/articles/group-audit

Component/English meaning. Cambridge dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/component