Question

Which one of the following is an unintended result of the Sarbanes-Oxley Act?

a. More detailed and accurate financial reporting
b.Increased management awareness of internal controls
c. Corporations delisting from major exchanges
d. Increased responsibility for corporate officers
e. Identification of internal control weaknesses

Answer 1

An unintended result of the Sarbanes-Oxley Act has been corporations delisting from major exchanges due to increased compliance costs and regulatory burden.

Step-by-step explanation:

The unintended result of the Sarbanes-Oxley Act mentioned in the question is corporations delisting from major exchanges. The Sarbanes-Oxley Act, enacted in response to major accounting scandals with corporations such as Enron and WorldCom, was intended to protect investors and restore trust in financial statements by improving corporate governance and enhancing the accuracy of financial reporting. However, one of the unintended consequences of the act has been the increased regulatory burden and costs associated with compliance, leading some companies to delist from major stock exchanges to avoid these burdens.