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

Question

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

c. Corporations delisting from major exchanges

While the Sarbanes-Oxley Act was primarily enacted to improve financial reporting and corporate governance, one unintended consequence was that some corporations chose to delist from major exchanges due to the increased compliance costs and regulatory burden associated with the Act. This led to a shift towards listing on smaller exchanges or remaining private.