What Verdica's 642 score means for Duck Woo Nam
Duck Woo Nam's composite score of 642 out of 850 places the firm in the "elevated risk" band (580–669). This means the firm shows some compliance strengths but carries material concerns that warrant attention from potential clients or audit committees. A score at this level suggests Duck Woo Nam meets baseline regulatory requirements in certain areas but has documented weaknesses that regulators or Verdica's data sources have flagged. Readers should interpret this as a yellow flag rather than a red one: the firm is not in the highest-risk category, but it is not yet in the acceptable range. Anyone considering engaging Duck Woo Nam should conduct additional due diligence beyond this score—including direct reference checks and a detailed review of the firm's specific audit track record.
How the sub-scores break down
Duck Woo Nam's three component scores tell different stories:
License & Credentials (300/850): This is the most concerning sub-score. A score of 300 indicates significant gaps or deficiencies in the firm's licensing standing or professional credentials as registered with California's state board. This could reflect lapses in required certifications, incomplete continuing education compliance, or other registration-level issues. In the accounting industry, credentials are foundational—they signal that a firm and its principals meet baseline educational and ethical standards. A low score here is a major red flag.
PCAOB Record (810/850): This score is strong, suggesting that Duck Woo Nam's audit quality and adherence to Public Company Accounting Oversight Board standards is solid. The PCAOB conducts regular inspections of accounting firms and documents findings related to audit execution, documentation, and compliance with auditing standards. A score of 810 indicates the firm has performed reasonably well under PCAOB scrutiny, with few or minor cited deficiencies in the areas regulators inspect.
Disciplinary (850/850): A perfect score here means there are no disciplinary actions, complaints, or sanctions recorded against Duck Woo Nam in available regulatory databases. This is a positive indicator and suggests the firm has not faced formal enforcement action.
What regulators in CA track for accounting providers
California's state board and the PCAOB together create a two-layer oversight system for accounting firms:
State Board Registration focuses on credentials, licensing status, and firm formation compliance. Regulators verify that principals hold appropriate CPAs or other required certifications, that continuing education requirements are met annually, and that firms maintain proper registration status. Violations here might include expired licenses, failure to renew registrations, incomplete ethics training, or disciplinary history with the state. A low credential score often stems from these registration-level issues.
PCAOB Audit Inspections examine the quality and rigor of audit work. The PCAOB looks at whether firms followed auditing standards, maintained sufficient documentation, identified accounting errors, and reported findings appropriately to audit committees. PCAOB inspections produce findings—sometimes critical—that can be resolved or can accumulate into patterns of non-compliance. A firm with a high PCAOB score has typically addressed cited findings or had minimal inspection issues.
Disciplinary databases at both state and federal levels track formal complaints, consent orders, monetary penalties, or license suspensions. A clean disciplinary record means no public enforcement action.
These three dimensions together paint a compliance picture: credentials show whether the firm is properly registered, PCAOB scores show whether it executes audits competently, and disciplinary records show whether it has faced formal sanctions.
Bottom line
Duck Woo Nam is a mixed-profile firm: a major credentialing gap undermines an otherwise acceptable regulatory footprint. The strong PCAOB score and clean disciplinary record are positive, but the low credential score (300) is concerning enough to require follow-up. Before engaging Duck Woo Nam, request clarification on the credential shortfall directly from the firm and verify its current registration status with the California board independently.