Past SEC Chairman Arthur Levitt (1998) stated that numerous companies "operate in the gray area between legitimacy and outright fraud." He also noted, "Integrity may be losing out to illusion." Keeping Levitt's comments in mind, consider a situation in which a company's financial statements comply with GAAP but nevertheless present a misleading picture of the company's operating performance and its financial position. Is it unethical for management to issue such financial statements? Should companies abide by the letter of the law or the spirit of the law? Explain