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The video tutorial discusses the composition and role of the Audit Committee at a corporation, clarifying that it is a subset of the Board of Directors. Shareholders elect the Board of Directors to oversee the company's operations, including hiring and firing executives. Different committees are formed by the Board of Directors, such as the compensation committee and governance committee, with the audit committee being one of them. The audit committee is drawn from the members of the Board of Directors, with a specific number of individuals serving on it, usually around three out of a total of seven members.