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This video tutorial discusses the composition and role of the Audit Committee within a corporation. 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 a compensation committee, a governance committee, and the Audit Committee. The Audit Committee is composed of members selected from the Board of Directors; for example, if there are seven board members, three may serve on the Audit Committee. This structure helps ensure proper oversight and governance within the company.