What Verdica's 656 score means for Neil Daley
Neil Daley's composite score of 656 places him in the elevated risk band (580–669). This means his overall compliance profile shows some strengths but also notable gaps that warrant attention before engaging his services.
A score in this range reflects a provider who meets baseline regulatory requirements but has enough friction in one or more compliance dimensions to raise caution flags. In Daley's case, the 656 score is pulled down significantly by a weak License & Credentials sub-score (340), despite a strong PCAOB Record (810) and a perfect Disciplinary record (850). For a business owner or audit committee evaluating this provider, the takeaway is straightforward: his track record on completed audits is solid, and he has no disciplinary history, but his formal qualifications or registration status merit closer scrutiny before you sign a contract.
How the sub-scores break down
License & Credentials (340): This is the primary drag on Daley's overall score. This sub-score reflects state board registration status, active licenses, and required certifications tracked by Colorado's accounting board. A score of 340 indicates significant deficiencies—either a lapsed license, incomplete credential documentation, or a mismatch between the scope of work he's performing and his formal authorizations. In the accounting industry, this dimension is foundational; regulators require active, current licenses to ensure practitioners meet ongoing continuing education and ethical standards. A low score here is a red flag.
PCAOB Record (810): This is a strength. The Public Company Accounting Oversight Board (PCAOB) conducts inspections of audit firms and tracks deficiency findings across workpapers, audit quality, and compliance. A score of 810 (in the "excellent" band) suggests Daley's audits have held up well under PCAOB scrutiny, with few or minor findings. This indicates solid audit execution and quality control on the work product itself.
Disciplinary (850): A perfect score here means no complaints, sanctions, violations, or regulatory actions have been filed against Daley with the state board or federal authorities. This is a clean record and a positive signal.
The tension in his profile is real: strong audit output and no disciplinary baggage, but weak underlying credentials or licensing status. This pattern sometimes reflects a practitioner in transition, or someone whose paperwork is out of sync with regulatory records—issues that are fixable but need to be resolved before engagement.
What regulators in CO track for accounting providers
Colorado's state board (under which Daley is registered) and the PCAOB together monitor several compliance dimensions:
State Board Registration tracks whether a provider holds an active CPA license or other relevant credential, has paid registration fees, completed required continuing professional education (CPE), and disclosed any disciplinary history. License lapses, incomplete CPE, or failure to renew can all depress this score.
PCAOB Audit Inspections examine a sample of audits completed by firms, looking for deficiencies in audit procedures, documentation, internal controls, and compliance with auditing standards (PCAAS or GAAS). Firms are scored on the prevalence and severity of findings; a clean inspection history raises the PCAOB score.
Disciplinary Records capture complaints filed with state boards or the PCAOB, formal investigations, sanctions, or settlements. These include ethical violations, fraud allegations, incompetence findings, or practice violations. A clear disciplinary record is the baseline expectation; any findings here are negative signals.
Scores move based on the recency and severity of these regulatory actions. A recent license lapse is worse than an old one; a major audit deficiency is worse than a documentation formatting issue.
Bottom line
Neil Daley is a mixed profile: his audit work quality and disciplinary record are solid, but his licensing or credential status needs immediate clarification before engagement. If you're considering his firm, request current proof of active licensure and CPA credentials, and confirm they align with the scope of audit work you need performed. The elevated risk score is not a disqualification, but it is a flag to verify.