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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, including the Audit Committee, which is one among others like the compensation and governance committees. For example, if there are seven directors on the board, three of them may serve on the Audit Committee, indicating its connection and derivation from the larger board.
