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The internal audit function within a company requires an audit committee composed of board members, typically three in number. Regulations mandate that committee members must be outsiders, meaning they cannot be employees of the organization, including the CEO. The audit committee holds a fiduciary responsibility to shareholders and external interests, acting as a check and balance between auditors and management. This committee engages directly with internal auditors, who report to them, ensuring oversight of both internal and external audit processes.
