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I do know one person who's paperwork wasn't approved at first because her husband had an old arrest that showed up in the background check (we're talking getting caught with a can of spray paint as a teenager back in the early 1970's). However they were able to get some kind of documentation from the court records showing that it was minor charge & he didn't go to trial or serve jail time or anything and once they submitted that everything was fine & they got their approval.
I think the only reasons CIS would completely refuse to approve someone would be for stuff like child abuse or felony convictions on their records (or on the records of someone in their household) -- in which case they wouldn't be approved by most adoption agencies or foreign countries anyway. Anything short of that you should have at least a fighting chance of explaining to CIS' satisfaction.
Usually your agency won't approve you for adoption if they think there's a real "issue" that could cause you to be denied by CIS or the sending country (or if your home seems dangerous or you insist on, say, doing shots of whiskey during the home visit or something)
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