What Verdica's 656 score means for William Herman
William Herman's composite score of 656 places the entity in the "elevated risk" band (580–669), indicating mixed performance across compliance dimensions. This score suggests the provider has areas of concern that warrant scrutiny before engagement, though it does not signal imminent regulatory action or disqualification.
A score in this range typically reflects one or more compliance weak points—often in licensing credentials, audit quality, or disciplinary history—that offset stronger performance elsewhere. For a business owner or consumer evaluating this provider, a 656 score means due diligence is necessary. You should verify that their specific service offerings and your risk tolerance align with their profile, and consider whether their stronger areas (if any) outweigh weaker ones for your particular accounting needs.
The score is not a blanket recommendation to avoid or engage; rather, it's a flag to research further before committing.
How the sub-scores break down
License & Credentials: 340 This is the lowest of the three sub-scores and falls well below the midpoint (425 on a 0–850 scale). In the accounting industry, this sub-score is derived from state board registration data and reflects whether a provider holds required licenses, maintains good standing, and meets continuing education or credential renewal standards. A score of 340 suggests gaps or deficiencies in licensing or credential status in Colorado. This could indicate expired or inactive licenses, unmet registration requirements, or incomplete credential documentation. This is a material concern because licensed status underpins legal authority to provide accounting services.
PCAOB Record: 810 This sub-score is very strong, ranking in the "excellent" band. The Public Company Accounting Oversight Board (PCAOB) maintains inspection records and audit quality assessments for firms that audit public companies. A score of 810 indicates that William Herman's audit work, as reviewed by the PCAOB, has performed well relative to regulatory expectations. This suggests competent audit execution, adequate quality controls, and minimal findings of significant deficiency during inspections. For entities that audit public companies, this is a positive signal.
Disciplinary: 850 A perfect score in the disciplinary dimension indicates no substantive negative history recorded in state or federal disciplinary databases. This means no recent enforcement actions, complaints upheld against the provider, or sanctions on record. A clean disciplinary record is a baseline expectation, so while this score is positive, it only confirms the absence of major red flags—it does not compensate for weaknesses in other areas.
What regulators in CO track for accounting providers
Colorado's state board of accountancy maintains registration records for CPAs and accounting firms operating in the state. Regulators track whether providers hold active licenses, comply with continuing professional education (CPE) requirements, maintain liability insurance where mandated, and undergo periodic renewal without lapse.
The PCAOB, a federal regulator created under the Sarbanes-Oxley Act, conducts triennial (or more frequent) inspections of audit firms. These inspections assess audit quality, testing of controls, sufficiency of evidence, and compliance with auditing standards. Findings can range from minor observations to significant deficiencies. Firms with consistent audit quality and no major findings maintain higher PCAOB scores.
The disciplinary dimension aggregates records from the state board, the Securities and Exchange Commission, state attorneys general, and civil litigation databases. Actions tracked include license suspension or revocation, consent orders, monetary penalties, and substantiated complaints. Providers with clean disciplinary histories show no entries in these systems.
Scores move based on recency, severity, and pattern of issues—not isolated incidents.
Bottom line
William Herman's 656 score reflects elevated risk, primarily due to licensing or credential concerns, despite strong audit quality and a clean disciplinary record. Before engaging this provider, verify current Colorado license status, confirm their registration is active, and clarify what credential gaps the state board has flagged. Their solid PCAOB performance is a positive, but it does not offset licensing-level deficiencies.