What Verdica's 643 score means for T.E. Lott & Company
T.E. Lott & Company's composite score of 643 out of 850 places the firm in the elevated risk band (580–669). This score reflects a mixed compliance picture: the firm operates with an active license and some regulatory standing, but carries meaningful gaps in credentials or disciplinary history that warrant attention before engagement.
A score in this range suggests the firm is not in critical condition, but a prospective client should not treat it as equivalent to a stronger-rated provider. The gap between 643 and the acceptable threshold of 670 is narrow, but meaningful—it signals that regulators or credential audits have identified issues significant enough to pull the overall rating below "acceptable" status. For a business owner or audit committee evaluating accounting service providers, this score means T.E. Lott & Company warrants closer due diligence before signing a contract.
No independent customer reviews are currently indexed for this entity, so there is no third-party feedback to either corroborate or offset the regulatory findings.
How the sub-scores break down
License & Credentials (440 / 850): This is the weakest component of the firm's profile. A score of 440 is well below acceptable thresholds and typically indicates gaps in required licenses, credential currency, or professional certifications tracked by state boards. In the accounting industry, this dimension captures whether partners hold current CPA licenses, whether the firm is properly registered to practice in Missouri, and whether key personnel meet continuing education or peer review standards. A low score here is a red flag and suggests potential barriers to practicing certain types of accounting work or audit services.
PCAOB Record (690 / 850): This score is in the acceptable to strong range. The PCAOB (Public Company Accounting Oversight Board) audits audit firms and tracks inspection findings, deficiencies, and remediation. A score of 690 indicates the firm has been inspected and has not accumulated severe or unresolved deficiencies in its most recent inspection cycle. However, it is not pristine—there are likely some findings on record, even if they have not risen to the level of disciplinary action.
Disciplinary (850 / 850): This is a perfect score, meaning there are no recorded disciplinary actions, sanctions, or enforcement actions from state or federal regulators. This is a positive signal and indicates the firm has not been subject to formal complaints, license suspensions, or penalties in the available regulatory record.
What regulators in MO track for accounting providers
Missouri's state board of accountancy, in coordination with the PCAOB, monitors accounting firms on several dimensions:
Licensing and Registration: Firms must maintain active registrations to perform audit and accounting services. The state board verifies that partners hold current CPA licenses and that the firm meets firm-level registration requirements.
PCAOB Inspections: For firms that audit public companies or report to the SEC, the PCAOB conducts periodic inspections. These inspections examine audit workpapers, quality control, independence compliance, and technical proficiency. Findings are categorized as deficiencies (failures to comply with auditing standards) or violations (failures to comply with PCAOB rules). Repeated or unresolved findings lower a firm's inspection score.
Continuing Education and Peer Review: The state board requires partners to complete continuing professional education (CPE) hours annually and may require peer review participation or internal quality assessments.
Disciplinary Actions: Complaints to the state board or PCAOB can result in formal investigations. If violations are substantiated, the board may impose sanctions ranging from reprimands to license suspension or revocation.
Bottom line
T.E. Lott & Company is a borderline provider that operates within a regulatory framework but carries credential or licensing gaps worth investigating. Before engaging the firm, request documentation of current licenses, ask about the nature of PCAOB findings, and verify the firm's scope of practice aligns with your accounting needs.