I don't think that the emphasis is right in the UK civilian training/testing regime. It's all about filling in the paperwork correctly and flying to a pre-defined set of parameters in a known environment (ie; licensed aerodrome). There's insufficient emphasis placed upon decision-making and good old-fashioned captaincy. Being able to manipulate the controls to put the aircraft where you want doesn't make you a pilot. (However, in these recent R44 roll-overs it seems the 'pilots' couldn't even do that).
I think that the CAA, rather than audit FTOs/TRTOs (and maybe soon RTFs too) in a pre-arranged manner should consider random spot-checks. Furthermore, not only the paperwork should be auditted. How about 'mystery shopper' type checks? The industry is quite small, but it's big enough to have 'anonymous' individuals turn up at a school for a trial lesson or ask for an LPC. By flying with the people imparting the training, or conducting the tests, in a covert manner, they'll soon be able to assess accurately who's doing the job properly and responsibly. The school / examiner would get paid their normal fee so nobody has anything to lose; except maybe the dodgy operators.
Could it work?
JJ