This video discusses the composition and role of a corporation’s audit committee. The audit committee is a group of people drawn from the company’s board of directors. Each member of the audit committee must be an outside director, otherwise known as an independent director, which means they have no material interest in the company.

The audit committee is responsible for hiring the company’s external auditor, negotiating the external auditor’s pay, and mediating disagreements between the company’s executives and the external auditor.