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The internal audit function involves an Audit Committee composed of board members, typically three in number. According to Sarbanes-Oxley (SOX) requirements, these committee members must be independent outsiders, meaning no employees of the organization, including the CEO, can serve on it. The Audit Committee has a fiduciary duty to shareholders and outside stakeholders, functioning as a check and balance between the auditors—both internal and external—and management. They maintain direct interaction with internal auditors, ensuring effective oversight and accountability within the organization.
