Often times it has been perceived that practices such as balance date adjustments, deferring expenses, advancing revenue recognition and judicious or indeed creative use of complex business group structures, while conforming to the letter were sometimes intended to obfuscate and subvert the spirit of compliance.
The general perception is that accounting statements have failed to inform of the drift of financial affairs of the company towards impending failure. This has catalysed debate on issues like accounting standards  BIS Review 45/2005  1  as well as issues of auditor independence on the one hand and the issues of integrity and personal deviance, on the other.