What Verdica's 792 score means for Nichols Cauley & Associates
Nichols Cauley & Associates scores 792 out of 850 on Verdica's composite scale, placing the firm in the "strong" band (740–799). This score reflects reliable compliance performance across the dimensions Verdica measures: state licensing, PCAOB audit history, and disciplinary records.
A score in the strong range suggests that the firm has met core regulatory requirements and has not accumulated significant red flags in recent PCAOB findings or state board records. Readers should interpret this as a provider that has demonstrated consistent adherence to accounting standards and licensing obligations. However, the score stops short of the "excellent" threshold (800–850), which would indicate flawless records across all dimensions.
For a business owner or individual considering this firm's services, a 792 score signals competence and regulatory standing, but the gap between 792 and the maximum possible 850 is worth noting. That gap points to areas where the firm's compliance profile is not spotless—specifically, the PCAOB sub-score of 705, which pulls the overall composite down.
How the sub-scores break down
License & Credentials (850/850): This perfect sub-score indicates that Nichols Cauley & Associates holds current, valid licensing in Washington and has no state board registration deficiencies on record. The firm has satisfied all mandatory credential and continuing education requirements tracked by state regulators. A score of 850 in this category is the baseline expectation for any active accounting provider; it reflects compliance with basic legal prerequisites to operate.
PCAOB Record (705/850): This sub-score is the primary driver pulling the overall composite below the excellent band. The PCAOB (Public Company Accounting Oversight Board) monitors audit quality, internal controls, and adherence to auditing standards. A score of 705 suggests the firm has issues flagged in PCAOB inspection findings—likely quality control gaps, audit documentation deficiencies, or other matters identified during regulatory reviews. Such findings are not uncommon in the profession, but they do indicate room for improvement in audit execution or oversight processes.
Disciplinary (850/850): No formal disciplinary actions, sanctions, or complaints have been recorded against the firm in state or federal disciplinary databases. This perfect score reflects a clean disciplinary history and no material violations reported to regulators.
What regulators in WA track for accounting providers
Washington's state accounting board oversees licensing, continuing education, and compliance with professional standards. Verdica pulls registration data to confirm firms remain in good standing and have not been subject to license suspension, revocation, or other state-level enforcement.
The PCAOB, a federal regulator established under the Sarbanes-Oxley Act, conducts periodic inspections of accounting firms that audit public companies or broker-dealers. PCAOB inspection reports document quality control deficiencies, audit failures, and violations of auditing standards. Common findings include insufficient audit evidence, inadequate testing of internal controls, poor documentation, or insufficient review of complex accounting transactions. These issues move a firm's PCAOB score downward but do not necessarily indicate dishonesty—they often reflect process gaps or competency gaps in specific audit areas.
Disciplinary records track formal actions: complaints upheld by state boards, SEC enforcement, criminal convictions, or civil settlements. A clean disciplinary record means no such formal action has been taken.
Together, these three data streams give regulators and the public visibility into whether a firm maintains licensing, passes quality inspections, and operates without formal violations.
Bottom line
Nichols Cauley & Associates is a strong-performing provider with valid credentials and no disciplinary history, but its PCAOB score of 705 indicates past audit quality findings worth investigating. Before engaging the firm, ask directly about those PCAOB findings and how they have been remediated.