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The video discusses the internal audit function within companies, highlighting the role of the audit committee, which is composed of board members, typically three in number. It is mandated by the Sarbanes-Oxley Act (SOX) that audit committee members be independent, meaning they cannot be employees of the organization, including the CEO. The committee has a fiduciary responsibility to shareholders and external stakeholders, serving as a check and balance between auditors (internal and external) and management. The internal audit function reports directly to the audit committee, facilitating direct interaction and oversight.
