What Verdica's 656 score means for John Balk
John Balk's composite score of 656 out of 850 places him in the "elevated risk" band (580–669). This means his profile shows some compliance strengths but also notable gaps that warrant attention before engagement.
A score in this range reflects a mixed picture. The provider has demonstrated competency in certain areas—most notably an excellent PCAOB record—but shows material weakness in licensing and credential documentation. For someone evaluating whether to hire this provider, a 656 score signals "proceed with caution." It's neither a red flag that demands immediate rejection nor a green light suggesting minimal due diligence is needed. Instead, it warrants a closer conversation about the specific areas of concern before committing to a professional relationship.
The score is built on data from regulated sources: PCAOB audit quality findings and state board registration records in Colorado. No independent customer reviews have been indexed yet, so this assessment rests entirely on regulatory compliance metrics rather than client experience.
How the sub-scores break down
License & Credentials (340/850): This is the weakest component of John Balk's profile. In the accounting industry, this dimension tracks state licensure status, active registration with professional boards, and credential verification (CPA, CMA, EA certifications, and other designations). A score of 340 suggests material gaps here—either incomplete credential documentation on file, lapsed licensing, or missing registrations in Colorado where the entity operates. This is the primary driver of the elevated overall score.
PCAOB Record (810/850): This is John Balk's strongest area. The Public Company Accounting Oversight Board (PCAOB) conducts inspections of audit firms and tracks quality indicators, control deficiencies, and audit performance. A score of 810 indicates few or no material findings from PCAOB inspections. This suggests the provider meets baseline audit quality standards and has avoided significant regulatory enforcement actions at the federal level.
Disciplinary (850/850): A perfect score here means no disciplinary actions, complaints, or sanctions appear in the state board record or PCAOB database. This is a positive signal that the provider has no documented history of ethics violations, financial misconduct, or professional malpractice findings.
What regulators in CO track for accounting providers
Colorado's state board and the PCAOB use different lenses to monitor accounting providers, and Verdica pulls from both.
State Board Registration focuses on whether a provider holds an active, unencumbered license to practice. This includes verifying CPA licenses, checking for suspensions or revocations, confirming continuing education compliance, and reviewing any disciplinary history at the state level. When the License & Credentials sub-score is low, it often signals missing documentation, inactive status, or incomplete credential verification in the state database.
PCAOB Audit Findings apply primarily to firms that audit public company financial statements. The PCAOB conducts regular inspections and documents deficiencies in audit quality, audit execution, and firm policies. These findings can range from minor documentation gaps to systemic control weaknesses. They are not criminal charges but regulatory observations that affect confidence in a firm's audit processes. A high PCAOB score suggests minimal deficiencies.
Together, these sources create a profile of regulatory compliance: whether the provider is licensed to operate, whether their audit work has passed federal quality review, and whether they have any disciplinary history. They don't measure client satisfaction, pricing, or responsiveness—only regulatory standing.
Bottom line
John Balk's 656 score places him in an elevated-risk category due to credential and licensing documentation gaps, despite a clean PCAOB record and no disciplinary history. Before engaging this provider, verify current Colorado licensing status independently and clarify which credentials are active and in good standing. A direct conversation with the provider about the licensing concerns is warranted.