What Verdica's 784 score means for Marcum LLP
Marcum LLP's composite score of 784 out of 850 places the firm in the "strong" band (740–799), indicating above-average compliance and regulatory standing. This score reflects an aggregated assessment of three dimensions: state licensing credentials, PCAOB audit record, and disciplinary history. For a business owner or audit committee member evaluating an accounting provider, a score in this range suggests the firm meets core regulatory expectations and has demonstrated reasonably consistent quality controls. It is not a perfect score—the firm is not in the "excellent" tier (800–850)—but the gap of 66 points is driven primarily by a lower PCAOB audit findings score of 685, not by credential or disciplinary issues. This suggests the firm's regulatory standing is solid, though some audit quality observations or deficiency findings may warrant review of recent PCAOB inspection reports.
How the sub-scores break down
License & Credentials (850/850): This perfect score means Marcum LLP holds all required state and federal licenses to practice as a certified public accounting firm in New Jersey and meets registration requirements set by state boards. A perfect credential score reflects current, valid registration with no gaps or lapsed certifications. This is a baseline expectation for any firm offering audit or accounting services, and Marcum meets it fully.
PCAOB Record (685/850): The PCAOB (Public Company Accounting Oversight Board) inspects registered audit firms and documents findings related to audit deficiencies, quality control weaknesses, and compliance with auditing standards. A score of 685 is below the firm's credential score but remains within acceptable range. This sub-score typically reflects identified audit findings—instances where inspectors determined the firm did not fully comply with auditing standards in specific engagements or areas of quality control. A score in this range is common among mid-market and regional firms and does not indicate systemic failure, but it does suggest areas where audit execution or documentation has shown room for improvement.
Disciplinary (850/850): A perfect disciplinary score means Marcum LLP has no recorded sanctions, fines, consent orders, or censures from state boards or federal regulators during the period tracked. This is a positive indicator of regulatory compliance and suggests the firm has not been formally sanctioned for misconduct or violations of professional standards.
What regulators in NJ track for accounting providers
The Public Company Accounting Oversight Board and New Jersey's state board of accountancy maintain separate but complementary oversight:
PCAOB findings focus on audit quality. Inspectors review engagement files, audit documentation, and compliance with PCAOB standards and rules. They may identify deficiencies such as insufficient testing, weak internal control assessments, or failure to follow auditing procedures. These findings are documented in inspection reports and factored into firm assessments. Firms with repeated or severe findings may face enforcement action.
State board registration ensures firms and individual CPAs maintain current licenses, meet continuing education requirements, and adhere to professional conduct rules. State boards investigate complaints, manage disciplinary proceedings, and may suspend or revoke licenses for violations such as fraud, gross negligence, or failure to follow accounting standards.
Both oversight mechanisms—audit quality inspections and state licensing discipline—move a firm's scores up when findings are minimal and compliance is consistent, and down when deficiencies or violations accumulate.
Bottom line
Marcum LLP is a strong choice from a regulatory compliance standpoint, with perfect credentials and disciplinary records and solid (if not exceptional) audit quality documentation. Anyone considering engagement should verify that the firm's specific service lines and recent PCAOB findings align with their needs, and request references from comparable clients for additional confidence.