What Verdica's 826 score means for KPMG LLP
KPMG LLP in Illinois received a composite score of 826 out of 850, placing it in the "excellent" band (800–850). This score reflects strong overall standing across the dimensions Verdica evaluates: professional licensing, audit quality oversight, and disciplinary history.
A score in this range indicates that the firm has met or exceeded baseline regulatory expectations in the areas measured. For a business owner or audit committee member, this suggests low compliance risk based on the available public record data. The firm holds current credentials, maintains acceptable audit quality metrics according to PCAOB inspection records, and shows no significant disciplinary actions in the state licensing database.
It's important to note what this score does and does not measure. Verdica's methodology focuses on regulatory data—licensing status, publicly reported audit findings, and formal enforcement actions. It does not account for fee structures, service responsiveness, staff turnover, or customer service quality. No independent customer reviews have been indexed for this entity, so the score reflects regulatory standing only. A high regulatory score should be one input in a vendor selection process, not the sole factor.
How the sub-scores break down
License & Credentials (850/850): This perfect sub-score indicates that KPMG LLP holds all required registrations and certifications for its jurisdiction and service lines. In the accounting field, this typically means the firm is registered with the Illinois state board and maintains good standing with the PCAOB (Public Company Accounting Oversight Board). A score at this level means no lapsed licenses, no pending credential challenges, and no documented compliance gaps in licensure.
PCAOB Record (790/850): This sub-score reflects the firm's track record in PCAOB triennial and special inspections. The PCAOB evaluates audit quality by reviewing selected engagements, testing compliance with auditing standards, and assessing the firm's quality control systems. A score of 790 is strong but not perfect, suggesting the firm has performed well overall but may have had findings in prior inspections that required remediation. Most large firms have some inspection findings; what matters is whether the firm addressed them adequately.
Disciplinary (850/850): A perfect score here means no open or closed disciplinary cases in the state licensing board's public record, no settlement agreements, and no sanctions tied to KPMG LLP in Illinois. This dimension tracks formal enforcement actions—violations of professional standards, negligence findings, fraud allegations, or other misconduct that boards formally adjudicate.
What regulators in IL track for accounting providers
Illinois and the PCAOB monitor accounting firms through two primary channels:
State Board Registration tracks whether firms hold valid licenses, whether principals and managers meet education requirements, and whether the firm has ongoing compliance with continuing education mandates. Disciplinary actions arise from complaints, investigation outcomes, or voluntary disclosures of violations. These can range from restatement failures and audit deficiencies to ethical breaches.
PCAOB Inspections evaluate audit quality by examining engagement files, testing whether auditors followed standards (like AU-C 200 for planning and risk assessment), and assessing quality control policies. PCAOB findings often relate to evidence gathering, valuation support, revenue recognition testing, or management override controls. If an inspection identifies deficiencies, the firm must propose a remediation plan. The PCAOB publishes inspection results (without naming specific clients), which feed into Verdica's PCAOB Record score.
Scores move downward when inspections uncover systemic issues, when disciplinary boards impose sanctions, or when licensing lapses. They improve as firms remediate findings and maintain clean records over time.
Bottom line
KPMG LLP in Illinois presents a low-risk profile based on regulatory data, with excellent licensing credentials and a solid PCAOB inspection history. Anyone considering this firm for audit or compliance services should verify that its specific service line and industry experience align with their needs, and should request references from existing clients—a high regulatory score does not substitute for fit and capability assessment.