Thursday, January 8, 2015
Vendor Audits are Essential with Stricter Conflict Minerals Rules
Posted by Armanino Dynamics Team
Conflict minerals are utilized in numerous high-tech products, from semiconductors to consumer electronics. The two-year grace period for SEC conflict minerals disclosure has just ended (December 31, 2014), meaning many public companies are now required to gather more detailed information about the source of the raw minerals used in their products. Even companies with outsourced manufacturing need to comply with the stricter rules.
The Conflict Minerals Rule was issued by the SEC in August 2012, as required by the Dodd-Frank Act, and took effect at the beginning of 2013. The rule requires public companies to determine annually whether their products contain so-called conflict minerals―gold, tin, tungsten or tantalum―mined in the mineral-rich Democratic Republic of Congo (DRC) or adjoining countries, and if so, to disclose certain information. To comply, companies must determine the source of their minerals and whether they are conflict-free.
Ensure your business has an effective audit system in place to comply with the stricter rules. Check out the recent article, As Conflict Minerals Rules Tighten, Vendor Audits are Critical, from Armanino’s High Tech and Life Sciences Industry practice leader, Jeff Russell, to learn more about the background on the rules, filing requirements, creating a vendor audit system, and leveraging the audit system.
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