Since the implementation of Sarbanes-Oxley,the cost of going public in the United States has:
A) increased.
B) decreased.
C) remained about the same.
D) been erratic, but over time has decreased.
E) It is impossible to tell since Sarbanes-Oxley compliance does not involve direct cost to the firm.

Question

Quizplus · Accepted Answer

The implementation of Sarbanes-Oxley has increased the regulatory burden and compliance costs associated with going public in the United States. This is due to the additional reporting requirements, internal control standards, and the need for companies to hire external auditors and legal advisors to ensure compliance with these regulations. These increased costs have made going public more expensive for companies, especially smaller firms, who may struggle to afford the extra expenses associated with becoming a public company.

Since the Implementation of Sarbanes-Oxley,the Cost of Going Public in the United