... to redress investor confidence. Unintended Consequences This 'knee jerk' and unopposed legislation has had a negative impact on existing safeguards and structures. There are many examples of unintended consequences of which the following are just a few. Fewer auditing companies: It is suggested that the number of firms that desire to audit public companies will diminish resulting in greater concentration within the accounting industry. The reason is that Title I requires public accounting firms to register with the PCAOB. There is already evidence of a decline in numbers; a trend that is expected to continue, not least because of the difficulties in withdrawing once registered (Raiborn and Schorg, 3) Bureaucracy: Perhaps the most obvious consequence is the increase in bureaucracy. Arthur Anderson LLP shredded audit papers and in consequence the Act mandates the retention of audit paperwork for seven years. However, the requirement to retain documents in "sufficient detail" is ...

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