What Verdica's 721 score means for Kassouf & Co PC
Kassouf & Co PC's composite score of 721 out of 850 places the firm in the "acceptable" band (670–739), which indicates a firm that meets baseline regulatory expectations but has room for improvement in certain compliance areas. A score at this level suggests the firm is operating within acceptable bounds for a public accounting provider, though it is not in the top tier of compliance performance.
The score is driven by three distinct regulatory dimensions tracked by Verdica. The firm's disciplinary record is excellent (850), meaning no material disciplinary actions have been recorded. The PCAOB record is strong (755), reflecting solid performance on audit quality reviews. However, the License & Credentials sub-score of 590 is notably lower and is the primary driver pulling the overall composite down into the "acceptable" rather than "strong" range. This gap between strong PCAOB performance and a lower credential score warrants attention from anyone evaluating the firm.
For a business owner or audit committee member, an "acceptable" rating means Kassouf & Co PC is not flagged as high-risk, but it also means doing additional due diligence before engagement is prudent. This is a firm to verify and validate, not a firm to engage sight-unseen.
How the sub-scores break down
License & Credentials (590 – Elevated Risk): This sub-score sits in the "elevated" band, meaning there are concerns with the firm's licensing status, credential verification, or registration standing in Tennessee. In the accounting industry, this dimension flags issues such as lapsed licenses, incomplete registrations, or credential documentation gaps. A score of 590 does not mean the firm is unlicensed, but rather that there are compliance gaps in how the firm's credentials are documented or maintained relative to state requirements. This is the most significant weakness in Kassouf & Co PC's profile.
PCAOB Record (755 – Strong): The PCAOB (Public Company Accounting Oversight Board) conducts inspection and enforcement activities for auditors of public companies. A score of 755 reflects acceptable to strong performance on PCAOB audits. This suggests the firm's audit work quality, internal controls, and adherence to auditing standards have not raised significant red flags in PCAOB inspections. This is a positive indicator.
Disciplinary (850 – Excellent): An excellent disciplinary score means no material regulatory enforcement actions, complaints substantiated by state boards, or sanctions have been recorded against the firm. This is the cleanest part of Kassouf & Co PC's record and suggests the firm has not faced significant legal or regulatory consequences.
What regulators in TN track for accounting providers
Tennessee's state board of accountancy and the PCAOB maintain separate but complementary oversight:
State Board Registration tracks license status, credential validity, renewal compliance, and individual practitioner certifications (CPA licenses). Gaps here—such as expired registrations, missing documentation, or incomplete filings—can lower a firm's credentials score even if the firm is operationally sound.
PCAOB Audit Findings assess audit quality, compliance with auditing standards, and sufficiency of internal quality controls. The PCAOB publishes inspection reports identifying deficiencies in audit procedures, documentation, and professional judgment. These findings move a firm's PCAOB score up or down based on severity and frequency.
Disciplinary Records document enforcement actions, such as sanctions, suspensions, or settlements resulting from violations of professional standards or regulatory requirements.
The gap between Kassouf & Co PC's strong PCAOB record and its elevated credentials score suggests a compliance maintenance issue rather than a fundamental audit quality problem.
Bottom line
Kassouf & Co PC is acceptable but not strong. Before engaging this firm, verify its current license status in Tennessee and resolve the apparent gaps flagged by the License & Credentials score. Confirm that any credential or registration issues have been remediated or are being actively addressed.