Abstract:After the promulgation of the new Company Law, the audit committee was positioned as the supervisory organization of the company under the “single-layer system” model, taking over the powers of the supervisory board while extending the scope of responsibility of its members from director's responsibility to supervisor's responsibility. Based on the provisions of the new Company Law regarding the audit committee, this study explores the impact of changes in statutory functions on the construction of the audit committee's litigation status. The research finds that changes in statutory functions enable the audit committee to exercise supervision through litigation, highlighting the necessity of constructing its litigation status. Further analysis reveals that the ambiguity of plaintiff qualifications and the absence of defendant qualifications pose challenges to determining the litigation status of the audit committee. The hierarchical relationship with the board of directors creates obstacles to the exercise of the audit committee's litigation authority, and the dual responsibilities of its members-both as directors and supervisors-result in heavier litigation consequences for the audit committee. These factors contribute to the practical difficulties in constructing the audit committee's litigation status, affecting the effective realization of its statutory functions. Enhancing corporate oversight efficacy through litigation offers a new perspective on improving the audit committee system with Chinese characteristics.