What Verdica's 656 score means for Stanley Lyon
Stanley Lyon holds a composite Verdica score of 656 out of 850, placing the firm in the "elevated risk" band (580–669). This score reflects a mixed compliance profile: strengths in regulatory standing are offset by material gaps in licensing and credentialing documentation.
A score in the elevated range signals that while the firm operates within regulatory oversight, prospective clients should conduct additional due diligence before engagement. The score is not a failing grade—it indicates the firm is actively registered and monitored—but it does warrant heightened scrutiny compared to providers scoring in the acceptable (670–739) or strong (740+) bands. Business owners or audit committees considering Stanley Lyon should treat this score as a flag to verify specific credentials, insurance coverage, and prior audit quality independently, rather than as a categorical disqualification.
How the sub-scores break down
License & Credentials: 340
This sub-score is notably low and represents the primary drag on Stanley Lyon's composite rating. A score of 340 in this dimension typically indicates incomplete, expired, or missing documentation of professional licenses, continuing education certifications, or required registrations at the state or firm level. In Nevada, this could include lapses in CPA licenses, audit firm registration, or proof of professional liability insurance. A low credential score does not automatically mean unlicensed practice, but it does suggest gaps in publicly available or filed documentation that regulators and clients rely on to verify standing.
PCAOB Record: 810
The Public Company Accounting Oversight Board record score of 810 is substantially higher and reflects favorably on Stanley Lyon's audit quality and inspection history. The PCAOB conducts triennial inspections of firms auditing public companies and issues detailed findings on audit documentation, quality controls, and compliance. A score of 810 in this band (740–799 is "strong"; 800–850 is "excellent") indicates that PCAOB inspections have not surfaced material deficiencies or systemic control failures. This suggests the firm's audit methodology and execution meet baseline federal standards for firms in the public audit market.
Disciplinary: 850
A perfect score in the disciplinary dimension indicates no recorded regulatory sanctions, enforcement actions, or complaints filed with the Nevada state accounting board, the PCAOB, or other oversight bodies within Verdica's indexed data. This is a strong signal that Stanley Lyon has not faced public disciplinary proceedings, fines, or license suspensions.
What regulators in NV track for accounting providers
Nevada's state board and the PCAOB jointly maintain the compliance landscape for accounting firms:
PCAOB audit findings measure the quality and completeness of audit work on public company financial statements. Inspectors evaluate whether firms have adequate quality controls, partner review processes, and compliance with auditing standards. Firms with systemic deficiencies—such as failure to test key account balances or inadequate partner supervision—receive detailed inspection reports that lower this score component.
State board registration requires Nevada-licensed firms to maintain current CPA licenses, meet continuing education hours, carry professional liability insurance, and file annual renewal documentation. Regulators track whether firms have current operating licenses, whether individual partners hold valid credentials, and whether firms have satisfied bonding or insurance requirements. Missing or lapsed documentation in this category is a common reason for a low License & Credentials sub-score.
Disciplinary records capture formal enforcement actions: fines, license suspensions or revocations, corrective action orders, and public complaints upheld after investigation. An unblemished disciplinary record (score of 850) means no such actions are on file.
Bottom line
Stanley Lyon presents a mixed profile: strong regulatory compliance history and clean disciplinary standing, but material gaps in credential documentation. Before engaging this firm, verify current CPA licenses, insurance coverage, and Nevada registration status directly with the state board and the firm. The elevated composite score warrants extra homework, not avoidance.