Commonly, individuals talk about how two opposing interests will invent "game changing," technology that renders the other interest useless until that interest, in turn, invents a new technology. The best example I can give is with weapons and armor:
[with some simplification]
- Simple weapons resulted in Leather Armor
- Metal Weapons outmoded Leather Armor
- Metal Armor outmoded Metal Weapons
- Simple Firearms outmoded Metal Armor
- Tanks outmoded Simple Firearms
I'm looking for a term similar to "a vicious cycle," but that I can use to describe how a business could play increasingly complex games with income reporting, forcing 3rd party auditors to spend more time checking their work.
Alternatively, a less pejorative phrase similar to "If you make something idiot-proof, God designs a better idiot." would work.