First fix

Author: bearInTheRoad

sqlmesh/core/model/definition.py

@@ -1035,6 +1035,13 @@ def validate_definition(self) -> None:
             # Will raise if the custom materialization points to an invalid class
             get_custom_materialization_type_or_raise(self.kind.materialization)
 
+        # Embedded model kind shouldn't have audits
+        if self.kind.name == ModelKindName.EMBEDDED and self.audits:
+            raise_config_error(
+                "Audits are not supported for embedded models",
+                self._path,
+            )
+
     def is_breaking_change(self, previous: Model) -> t.Optional[bool]:
         """Determines whether this model is a breaking change in relation to the `previous` model.
 

tests/core/test_model.py

@@ -12158,3 +12158,19 @@ def test_grants_empty_values():
 def test_grants_table_type(kind: t.Union[str, _ModelKind], expected: DataObjectType):
     model = create_sql_model("test_table", parse_one("SELECT 1 as id"), kind=kind)
     assert model.grants_table_type == expected
+
+
+def test_audits_in_embedded_model():
+    expression = d.parse(
+        """
+        MODEL (
+            name test.embedded_with_audits,
+            kind EMBEDDED,
+            audits (not_null (columns := (id)))
+        );
+
+        SELECT 1 AS id, 'A' as value
+        """
+    )
+    with pytest.raises(ConfigError, match="Audits are not supported for embedded models"):
+        load_sql_based_model(expression).validate_definition()