What Verdica's 656 score means for Bennett Bailey
Bennett Bailey's composite score of 656 out of 850 places the firm in the "elevated risk" band (580–669). This means the firm's overall compliance profile shows meaningful weaknesses that warrant closer scrutiny before engagement, though it is not categorized as high-risk.
The score reflects a mixed picture. While the firm maintains a strong PCAOB audit record (810/850), significant gaps exist in licensing and credentials (340/850)—the lowest of the three dimensions. The disciplinary sub-score is perfect (850/850), indicating no formal regulatory actions or sanctions on file. For a business owner or finance manager considering Bennett Bailey for accounting services, the 656 score suggests you should request detailed information about the nature and scope of the licensing gaps and verify current registration status with Colorado regulators before proceeding.
How the sub-scores break down
License & Credentials (340/850): This sub-score reflects gaps or limitations in professional licensing, certifications, or registration standing. In the accounting industry, this typically includes CPA licensing, firm registration with state boards, and maintenance of required continuing education credits. A score of 340 is substantially below the acceptable threshold and suggests material deficiencies in one or more credential categories. This does not necessarily mean the firm is unlicensed, but rather that documented gaps exist in the credential profile.
PCAOB Record (810/850): The Public Company Accounting Oversight Board (PCAOB) tracks audit quality and compliance for firms that audit public companies or handle related services. A score of 810 is in the strong range and indicates Bennett Bailey has a generally sound record in PCAOB inspections and audit file reviews. The minor deduction from a perfect score suggests minor or isolated findings, not systemic audit quality issues.
Disciplinary (850/850): A perfect score means no formal disciplinary actions, sanctions, suspensions, or enforcement findings are recorded in the underlying state board or federal regulatory databases. This is a positive signal and indicates the firm has not faced documented regulatory enforcement.
What regulators in CO track for accounting providers
Colorado's state board of accountancy and the PCAOB maintain overlapping oversight frameworks. The state board registers CPAs and accounting firms, enforces continuing education requirements, investigates complaints, and can impose discipline ranging from warnings to license revocation. The PCAOB, a federally chartered nonprofit, inspects firms that audit public companies for compliance with auditing standards and internal quality controls.
Key compliance dimensions tracked include:
- Licensing status and validity across all principals and staff
- Audit quality measured through PCAOB inspection findings, which assess whether audits complied with relevant standards and whether the firm maintained adequate documentation and engagement controls
- Disciplinary history, including complaints, investigations, consent orders, or sanctions issued by the state board or PCAOB
- Continuing education compliance to ensure practitioners meet annual training requirements
- Peer review results, which evaluate whether firm policies and procedures adequately support audit and accounting work
A low License & Credentials score typically reflects one or more of the following: expired or lapsed individual CPA licenses among partners or managers, firm registration lapses, unmet continuing education hours, or documented credential discrepancies in state records.
Bottom line
Bennett Bailey presents a mixed compliance profile. The strong PCAOB audit record and clean disciplinary history are positive indicators, but the notably low licensing and credentials score is a material concern that demands clarification. Before engaging Bennett Bailey, verify that all principals hold current, active CPA licenses in Colorado, confirm the firm's current registration status with the Colorado state board, and request documentation explaining the specific credential gaps flagged in the score.