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The internal audit function within a company involves an Audit Committee, composed of board members, typically three in number. According to the Sarbanes-Oxley Act (SOX), this committee must include outside members, prohibiting board employees, including the CEO, from serving. The Audit Committee holds a fiduciary responsibility to shareholders and external stakeholders, functioning as a check and balance between auditors (internal and external) and management. They engage directly with internal auditors, establishing a transparent oversight relationship where internal audit functions report directly to the Audit Committee.