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The Audit Committee is a subset of the Board of Directors at a corporation. Shareholders elect the Board of Directors to oversee the company's operations, including hiring and firing executives like the CEO. The Board of Directors forms different committees, such as the compensation committee and the governance committee. The Audit Committee is one of these committees and is drawn from the members of the Board of Directors. For example, if there are seven people on the board, three of them may serve on the Audit Committee.
