The American Institute of Certified Public Accountants (AICPA), which provides the guidance and attestation standards for the reporting on controls for service organizations, has introduced new standards for reporting on controls for service organizations. These standards are effective for reports for periods ending on or after June 15, 2011.
There are two primary types of new reports, referred to as Service Organization Control (“SOC”) reports. A SOC1 report is the report to be used by clients and their auditors to plan and perform an audit or integrated audit of client’s financial statements. A SOC2 report is the report used by clients or stakeholders to gain confidence and place trust in a service organization’s systems.
Because LKCS does not process transactions impacting your financial statement assertions used for financial reporting, LKCS’ independent auditor performs a SOC2 report examination for us annually. The SOC2 report is intended to meet the needs of a broad range of users that need information and assurance about the controls at LKCS that affect the security, availability, and processing integrity of the systems that LKCS uses to process data and the confidentiality of the information processed by our systems.
LKCS management is confident that our SOC2 report adequately and accurately reflects the description of our data management and processing system, the suitability of our controls design, and the operating effectiveness of the controls associated with the data management and processing system.
Please contact us for more information about our SOC2 report or visit the AICPA web site at http://www.aicpa.org/soc.