Internal Audit

Audit Organization

TCC's audit function reports to the Board of Directors (BOD) and is staffed by one Chief Auditor and eight auditors. All auditors are full-time, responsible for executing the audit work of TCC and its subsidiaries.

TCC Dutch Holdings BV had established its audit team, which dedicated to the audit work of the subsidiaries.

The appointment and dismissal of TCC's Chief Auditor have been approved by the Audit Committee in accordance with the law, and resolved by the Board of Directors.

Audit Work Description

The audit work is executed according to an annual plan, including monthly audit items, which will take into account risks that have been identified. Accordingly, TCC's audit function prepares audit reports supported by working papers and relevant materials, to evaluate the effectiveness of internal control system.

TCC's audit function conducts the follow-up process, supplemented by quarterly reports, to ensures the identified control deficiencies and issues are resolved and that corrective actions are taken.

Formulation of Audit Plan

TCC's audit function develops an annual audit plan based on risk assessment results, which is approved by the Board of Directors. During the Board discussions, the opinions of each independent director are fully considered and recorded in the meeting minutes accordingly.
TCC has included the following items in the annual audit plan as audit items in accordance with Article 13 of the "Regulations Governing Establishment of Internal Control Systems by Public Companies.

Compliance with laws and regulations.
Controls over material financial and business activities, including the acquisition or disposal of assets, transactions involving derivative financial instruments, lending of funds to others, provision of endorsements or guarantees for others, and management of related party transactions.
Supervision and management of subsidiaries.
Management of the operations of the Board of Directors.
Management of the financial statement preparation process, including the application of International Financial Reporting Standards, professional accounting judgment procedures, and the processes for changes in accounting policies and accounting estimates.
Information and communications security inspection.
Key operating cycles, including the sales and collection cycle and the procurement and payment cycle.
Management of the operations of the Audit Committee.
Management of the operations of the Remuneration Committee.
Management of sustainability information.

Issuance of Audit Report

On a monthly basis, the audit work is executed according to the annual audit plan to evaluate TCC's internal control system. TCC's audit function prepares audit reports supported by working papers and related materials, and submit them to the Audit Committee for review by the end of the month following the completion of the audit.

Follow-up on Audit Findings

All identified control deficiencies and issues, will be truthfully disclosed in the audit report. After the report is approved, follow-up procedures will be conducted, and a quarterly follow-up report will be prepared to ensure that the appropriate corrective actions have been taken in a timely manner. Once the follow-up report is approved, it will be submitted to the Audit Committee for review by the end of the following month.

Evaluation of internal control system

The audit function reviews the self-assessment reports of the divisions and subsidiary, together with the improvement status of identified control deficiencies and issues, to serve as the main basis for the Board of Directors and President to evaluate the effectiveness of the overall internal control system and issue the Statement of Internal Control System.

Supervision and management of subsidiaries

Conduct the audit work for subsidiaries on a regularly or irregularly basis. After the findings and recommendations in the audit reports are approved, notify each audited subsidiary to make improvements, and prepare regular follow-up reports to ensure that appropriate corrective actions have been taken in a timely manner.
Review the audit reports or self-assessment reports submitted by subsidiaries, and track the improvement status of the identified control deficiencies and issues.

Communication principles between Independent Directors and the Audit Supervisor

Written report ：Audit reports and tracking reports are submitted to the convener of the Audit Committee for approval, and then delivered to each Independent Director for review before the end of the following month.
Presentation：The Chief Auditor reports on key audit work of TCC and its subsidiaries to Independent Directors at the quarterly Audit Committee meetings and responds to their questions.
Others：If major violations are discovered or the Company is at risk of suffering significant damage, a report should be prepared and submitted immediately, and all Independent Directors should be notified.

Reporting Mechanism for Violation of Code of Conduct

To maintain TCC's reputation, protect its assets, and prevent damages to the rights and interests of shareholders, employees, and partners due to corruption, theft, embezzlement, personal gain, fraud, or other unethical and dishonest behavior, a reporting channels and handling procedures has been established to enhance corporate governance and ensure the legal rights of whistleblowers and related parties.

Email Reporting

mp.buster@taiwancement.com

Written Reporting

TCC Audit Office, No. 113, Section 2, Zhongshan North Road, Zhongshan District, Taipei City

On-site Reporting Reception Department

TCC's Audit Department

Named Reporting

Whistleblowers are required to provide their name, ID number, and contact information including address, phone number, email address, along with relevant information and supporting documents.

※ If the report is anonymous or if relevant information and documents are incomplete, it cannot be processed.

Download the Reporting Mechanism for Violation of Code of Conduct

Mechanism for Violation of Code of Conduct

Communication Between Independent Directors and the Audit Supervisor

2025

2024

2023

Date	Attendees	Discussion Topics	Discussion Results
2025/03/12 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Chief Auditor, Morris Yeh	1. Audit report. 2. Proposed issuance of the Company's "Statement on Internal Control System" for the fiscal year 2024. sion on Statement of Internal Control System.	All reported matters have been duly noted.
2025/03/12 Independent discussion	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Chief Auditor, Morris Yeh	Special report.	Acknowledgment by Independent Directors.
2025/05/13 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Chief Auditor, Morris Yeh	Report on the execution results of audit operations.	All reported matters have been duly noted.
2025/05/13 Independent discussion	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Chief Auditor, Morris Yeh	Special report.	Acknowledgment by Independent Directors.
2025/08/13 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Ruu-Tian CHANG Independent Director, Man-Jung CHAN Independent Director, Sherry S. L. Lin (participating via video conference) Chief Auditor, Morris Yeh	Report on the execution results of audit operations.	All reported matters have been duly noted.
2025/08/13 Independent discussion	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Ruu-Tian CHANG Independent Director, Man-Jung CHAN Independent Director, Sherry S. L. Lin (participating via video conference) Chief Auditor, Morris Yeh	Special report.	Acknowledgment by Independent Directors.
2025/08/22 Ad Hoc Audit Committee Meeting	Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Independent Director, Man-Jung CHAN Chief Auditor, Morris Yeh (This meeting was conducted through a video conference)	Investigation report on the fire losses and insurance claims at Molie Quantum Energy Corporation.	All reported matters have been duly noted.
2025/11/12 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Ruu-Tian CHANG Independent Director, Man-Jung CHAN Independent Director, Sherry S. L. Lin Chief Auditor, Morris Yeh	Report on the execution results of audit operations.	All reported matters have been duly noted.
2025/11/12 Independent discussion	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Ruu-Tian CHANG Independent Director, Man-Jung CHAN Independent Director, Sherry S. L. Lin (participating via video conference) Chief Auditor, Morris Yeh	Special report.	Acknowledgment by Independent Directors.

Date	Attendees	Discussion Topics	Discussion Results
2024/2/27 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Discussion on Statement of Internal Control System.	Passed without objection.Independent Director Mei-Hua Lin raised questions for discussion and communication.
2024/5/14 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Report on the execution results of audit operations.	No opinions were expressed in this meeting.
2024/8/12 Independent discussion	Independent Director Audit Supervisor, Chia-Hua Tsao	Special report.	Discussion and communication on questions raised by Independent Directors.
2024/8/13 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Nigel N. T. LI Independent Director, Ruu-Tian CHANG Audit Supervisor, Chia-Hua Tsao	Report on the execution results of audit operations.	No opinions were expressed in this meeting.
2024/10/14 Independent discussion	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Audit Supervisor, Chia-Hua Tsao Audit Supervisor, Morris Yeh	Special report.	Acknowledgment by Independent Directors.
2024/11/11 Independent discussion	Independent Director, Victor WANG Independent Director, Lynette Ling-Tai Chou Independent Director, Sherry S. L. Lin Independent Director, Ruu-Tian CHANG Audit Supervisor, Morris Yeh	Report on the execution results of audit operations.	No opinions were expressed in this meeting.

Date	Attendees	Discussion Topics	Discussion Results
2023/1/17 Independent discussion	Independent Director, Mei-Hua Lin Audit Supervisor, Chia-Hua Tsao	Report on the audit workflow and the results of audit operations of the Chinese subsidiaries.	Independent Director Mei-Hua Lin raised questions for discussion and communication.
2023/2/6 Independent discussion	Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Report on the audit workflow and the results of audit operations of the Chinese subsidiaries.	Discussion and communication regarding Independent Director, Sherry S. L. Lin's questions.
2023/2/24 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Discuss the Statement of Internal Control System.	No opinions were expressed in this meeting.
2023/4/18 Independent discussion	Independent Director, Mei-Hua Lin Audit Supervisor, Chia-Hua Tsao	Report on the internal control early warning system.	Independent Director Mei-Hua Lin: Regularly review whether the system needs to be amended at any time due to changes in regulations or if the early warning system does not meet operational needs. Current status: The internal control early warning system is regularly reviewed as suggested.
2023/5/11 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Report on the execution results of audit operations.	No opinions were expressed in this meeting.
2023/7/6 Independent discussion	Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Report on the audit workflow and the results of audit operations of the Chinese subsidiaries.	Discussion and communication regarding Independent Director Sherry S. L. Lin's questions.
2023/7/10 Independent discussion	Independent Director, Mei-Hua Lin Audit Supervisor, Chia-Hua Tsao	Report on the audit workflow and the results of audit operations of the Chinese subsidiaries.	Independent Director Mei-Hua Lin raised questions for discussion and communication.
2023/8/10 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Report on the execution results of audit operations.	No opinions were expressed in this meeting.
2023/8/24 Independent discussion	Independent Director, Mei-Hua Lin Audit Supervisor, Chia-Hua Tsao	Report on the audit workflow and the results of audit operations of the Chinese subsidiaries.	Independent Director Mei-Hua Lin raised questions for discussion and communication.
2023/9/8 Independent discussion	Independent Director, Mei-Hua Lin Audit Supervisor, Chia-Hua Tsao	Report on driving internal audit operations with data analysis.	Independent Director Mei-Hua Lin: Continue to strengthen data analysis to audit high-risk items. Current status: Data analysis models continue to be built as suggested.
2023/11/10 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Report on the execution results of audit operations.	No opinions were expressed in this meeting.
2023/12/21 Audit Committee Meeting	Independent Director, Victor WANG Independent Director, Yu-Cheng Chiao Independent Director, Lynette Ling-Tai Chou Independent Director, Mei-Hua Lin Independent Director, Sherry S. L. Lin Audit Supervisor, Chia-Hua Tsao	Discuss the audit plan.	No opinions were expressed in this meeting.