What Verdica's 656 score means for Stanley Davies
Stanley Davies in Colorado received a composite score of 656 out of 850, placing the firm in the "elevated risk" band (580–669). This score reflects a mixed compliance profile: while the firm demonstrates strong regulatory standing in certain areas, there are material gaps in licensing and credential verification that warrant attention from potential clients.
A score in the elevated range suggests the firm is operational and not flagged for serious disciplinary action, but it also signals that due diligence beyond this report is prudent. The firm is neither a high-risk outlier nor a top-tier provider by Verdica's standards. Business owners or audit committees considering Stanley Davies should view this score as a starting point for further vetting—not a green light or a red flag on its own.
How the sub-scores break down
License & Credentials (340/850): This is the weakest component of Stanley Davies' profile. A score of 340 indicates gaps or deficiencies in state board registration, professional license status, or credential documentation. In the accounting industry, this dimension reflects whether the firm and its principals hold current, valid licenses required to practice in Colorado and whether those credentials are verifiable against state records. A low score here often means incomplete filings, lapsed renewals, or credentials that cannot be independently confirmed. This is the area most directly controllable by the firm and warrants direct inquiry.
PCAOB Record (810/850): The Public Company Accounting Oversight Board score of 810 is strong. The PCAOB inspects and enforces quality standards for firms that audit public companies or broker-dealers. A score in this range suggests the firm either has a clean recent inspection history or has demonstrated remediation of any identified deficiencies. This indicates competence in audit execution and internal quality controls, at least in the regulatory domain the PCAOB oversees.
Disciplinary (850/850): A perfect score here means there are no recorded disciplinary actions, complaints, or sanctions in Verdica's indexed sources (typically state boards and PCAOB enforcement records). This is a positive signal—the firm has not faced formal regulatory censure, fines, or restrictions on practice.
What regulators in CO track for accounting providers
Colorado's state board of accountancy and the PCAOB maintain distinct but complementary oversight roles. The state board registers CPAs and accounting firms, verifies continuing education compliance, and investigates complaints from clients or other licensees. Violations tracked here include fraud, incompetence, moral turpitude, and failure to maintain professional standards. The board can suspend or revoke licenses, impose fines, and issue public censures.
The PCAOB, a federal entity created under the Sarbanes-Oxley Act, inspects audit firms that handle public company audits. PCAOB inspections evaluate audit quality, internal controls, partner compensation, and compliance with auditing standards. Inspection findings can result in enforcement actions, corrective orders, and reputational impact.
A firm's score across these dimensions moves based on inspection outcomes, the number and severity of findings, timeliness of remediation, and absence of repeat violations. License and credential scores reflect registration completeness and status currency. Disciplinary scores reflect the absence of formal sanctions. A gap between a strong PCAOB record and weak credentials—as seen with Stanley Davies—often indicates the firm passes federal audit quality checks but has administrative or licensing issues at the state level.
Bottom line
Stanley Davies sits in the middle tier of compliance profiles: no serious disciplinary history and solid PCAOB standing, but meaningful gaps in state credentials that reduce overall confidence. Before engaging this firm, verify its current Colorado license status directly with the state board and clarify the nature of any credential discrepancies indexed here.