Stress is a tensor which is configuration-dependent. Cauchy stress is also called true stress. Cauchy stress and engineering stress are related by deformation gradient.
Consider a bar subject to axial tension force. Now we want to know the stress in the bar. The stress can be determined by the force divided by the cross-section area. Are we going to use the cross-section area before the deformation or the one after the deformation? The former leads us to the engineering stress while the later to the Cauchy stress. If the deformation of the cross-section area is small, there is no difference between the two. Otherwise, there is difference. In nonlinear analysis which involves large strain, Cauchy stress is the quantity that we should get from the engineering point of view.