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The video discusses the composition and role of the Audit Committee within a corporation. It explains that the Audit Committee is a subset of the Board of Directors, which is elected by shareholders to oversee the company's operations and executives, including hiring and firing the CEO. The Board of Directors forms various committees, such as a compensation committee and a governance committee, one of which is the Audit Committee. For example, if there are seven members on the Board, three members may be selected to serve on the Audit Committee.
