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The video discusses the internal audit function within companies and highlights the role of the audit committee, typically comprised of three members from the board of directors. According to SOX, the committee must include outside members who are not employees of the organization, preventing the CEO, also a board member, from serving. The audit committee has a fiduciary responsibility to shareholders and outside interests, acting as a check and balance between management and both internal and external auditors. They interact directly with internal auditors, to whom the internal audit functions report.
