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In this video, the composition and role of the Audit Committee within a corporation are discussed. The Audit Committee is a subset of the Board of Directors, responsible for overseeing the company's operations and executives. Shareholders elect the Board of Directors to oversee the company, including hiring and firing the CEO. Different committees are formed by the Board of Directors, such as the compensation committee and governance committee, with one of them being the audit committee. The audit committee is made up of members drawn from the Board of Directors, for example, if there are seven people on the board, three of them may serve on the audit committee.