I don't quite see the correlation between somebody allegedly breaking the Act and the CARs while behaving in a manner dangerous to the public (evidenced by the photos and video footage that were available at the time) and the audit problems faced by RAAus.
Kaz, I think what WOC is saying is the all too frequent behavior of CASA which is: If we can't get you for this (dangerous idiot in aeroplane) we will get you for that (full audit). I don't know if that is what happened but I would not be surprised.
The latter were a disgrace and those in charge are now largely part of a sad history, but they in no way account for or excuse the alleged behaviour which reflects on us all who drive machines that fly.
Disgrace is a bit harsh, I am sure those in charge at the time had good intent. CASA are the kings of wanting perfect paperwork. Any AOC holder/chief pilot will agree. Incorrect paperwork does not always mean shoddy business and fortunately CASA know this as well. And sadly, yes, a single halfwit can do a lot of harm which reflects on all of us.