For a long time, the operation of China's corporate supervision system has faced systemic challenges of low effectiveness and weak regulation. The 2023 revision of the Company Law introduced innovative improvements to the corporate supervision mechanism, including the establishment of the board audit committee system. At the same time, the supervisory board model continues to be used, and companies are given the autonomy to choose between different supervision models. However, the provisions related to the audit committee are mostly brief and general in nature, leaving gaps in areas such as its functional role, scope of authority, composition rules, and accountability mechanisms, which require systematic rule interpretation. In terms of its role, the audit committee is not intended to replace the supervisory board, and the two can coexist without conflict. In terms of scope of authority, in addition to financial oversight being an inherent duty of the audit committee, the extent to which the audit committee assumes other supervisory responsibilities can be tailored by the company's articles of association based on different organizational structures for supervision. As for the composition, to ensure the independence and professionalism of the audit committee, its members should be appointed by the shareholders'meeting, with specific qualifications and professional backgrounds required. Executive directors should not concurrently serve as members of the audit committee. In terms of accountability, collective and individual responsibilities, as well as special and general supervisory duties, should be clearly defined, with differentiated accountability requirements imposed on different types of directors within the audit committee. Additionally, it is essential to ensure that the audit committee has final authority over supervisory resolutions and only advisory power over management resolutions, thereby establishing an effective boundary between operational and supervisory powers.