Open-book management is consistent with another, larger trend in accounting-increased transparency of financial results. This trend follows a period in which many U.S. firms were guilty of generating misleading financial reports and hiding pertinent facts about financial performance. These practices led to the Sarbanes-Oxley Act of 2002 and other corporate reporting reforms. Conduct a library or Internet search on the topic of financial reporting transparency to address the following items:
a. Discuss what is meant by the term "transparency" in the context of financial reporting.
b. Discuss how open-book management is consistent with increased reporting transparency.