What Verdica's 656 score means for Charles Lee
Charles Lee's composite score of 656 out of 850 places this accounting provider in the "elevated risk" band (580–669). This means the entity presents more compliance concerns than a typical strong provider, but does not fall into the highest-risk category.
For a business owner or entity considering engaging Charles Lee's services, the score signals a need for closer due diligence before proceeding. The B grade reflects a mixed compliance profile: while some dimensions are solid, others warrant attention. This is not a red-flag disqualification, but rather a yellow-flag indicator that you should verify specifics relevant to your audit or accounting needs before signing an engagement letter.
How the sub-scores break down
License & Credentials: 340
This is the lowest component of Charles Lee's profile and indicates material gaps in formal licensing or credentialing status. In the accounting industry, credentials typically include CPA licensure, educational qualifications, and active registration with state boards. A score of 340 in this dimension—well below the midpoint—suggests that Charles Lee either lacks certain expected licenses, has incomplete or lapsed credentials, or fails to meet minimum state registration requirements. This is the primary driver pulling the overall composite score down into the elevated-risk band.
PCAOB Record: 810
The Public Company Accounting Oversight Board (PCAOB) record score is strong at 810, reflecting a favorable audit inspection history. This means that PCAOB inspections of Charles Lee's work have not identified major or recurring deficiencies in audit quality, financial reporting controls, or compliance with auditing standards. A score in this range typically indicates that the provider has passed recent inspections without significant findings.
Disciplinary: 850
The disciplinary sub-score of 850 is the highest possible and indicates no material disciplinary action from state boards, professional associations, or regulators. This means there are no documented cases of complaints, consent orders, suspensions, or sanctions in the regulatory record reviewed by Verdica.
What regulators in CO track for accounting providers
Colorado's state board of accountancy and the PCAOB together establish and monitor compliance standards for accounting providers operating in the state.
The state board registration system verifies that providers hold a valid CPA license (if required by scope), complete continuing education, maintain required insurance, and comply with rules of professional conduct. Gaps in this registration—such as an expired license, incomplete education hours, or failure to renew—directly affect the License & Credentials sub-score.
The PCAOB audit record tracks the quality of work on public company audits. PCAOB inspectors review audit files, assess compliance with auditing standards (such as PCAS), and examine financial reporting controls. Major findings—such as failure to gather sufficient audit evidence, inadequate testing of significant accounts, or deficiencies in client communication—lower the PCAOB score. Minor or no findings keep it high.
Disciplinary records are maintained by the state board and national databases (such as the AICPA's member directory and the National Discipline Database). These logs track formal complaints, investigations, consent orders, license suspensions, or public sanctions. A clean record means no documented enforcement actions.
Bottom line
Charles Lee presents an uneven risk profile: strong audit inspection history and a clean disciplinary record are offset by credentials or licensing gaps that require investigation. Before engaging this provider, verify that their specific licenses align with your state and audit scope, confirm their current registration status with Colorado's board of accountancy, and request references from recent clients in your industry.