In accordance with the Dodd-Frank Act, publicly traded companies are now required to report whether or not their products contain tin, tungsten, tantalum or gold (3TG) materials mined in the Democratic Republic of the Congo or surrounding areas. If a company determines its conflict minerals originated in those countries, it will have to file a Conflict Minerals Report with the SEC and publish it online. The reports, which will outline to the SEC all of the due diligence the company performed as it sourced its supply chain, must be independently audited.
The purpose of the audit is to express an opinion or conclusion as to: (1) whether the design of the issuer’s due diligence framework, as set forth in the Conflict Minerals Report, is in conformity with the criteria set forth in the nationally or internationally recognized due diligence framework used by the issuer, and (2) whether the issuer’s description of the due diligence measures it performed as set forth in the Conflict Minerals Report is consistent with the due diligence process that the issuer undertook.
Miller Kaplan Arase provides Independent Private Sector Audits (IPSA) to assist companies with their reporting requirements, and is prepared to assist issuers in developing documentation and controls to comply with these new SEC reporting requirements.