Which component is NOT necessary for defining a production and CO master data?

In the context of defining production and controlling (CO) master data, certain components are essential to the effective management of these processes. Material master data is crucial as it contains all the information related to the materials that an organization procures, produces, or sells. The Bill of Materials (BOM) is also vital since it outlines the components needed to produce a finished product, reflecting the quantities required. Routing is integral as it specifies the production processes, outlining the sequence of operations needed to manufacture the product.

On the other hand, internal audit reports are not a part of the master data required for defining production and CO. They are primarily concerned with the assessment of compliance and the effectiveness of operations but do not directly contribute to the parameters set for manufacturing or cost controlling. Hence, this component does not play a role in the establishment of production-related master data.