Why do filing and notification duties exist if nobody ever reads the filings?

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What actually happens during a routine inspection and who decides how hard to look? How much does compliance really cost a small firm compared with the licence fee? Can a clerk reject your paperwork because one form was filled in the wrong ink? Can a regulator be captured by the industry it polices without anyone breaking a rule? What recourse does a business have when the regulator changes its guidance mid-year? How can an agency issue binding rules when only the legislature is meant to make law? Why are administrative procedures so obsessed with the order in which documents are filed? Who audits the regulators when a licensing decision turns out to be badly wrong? What is the difference between guidance from a regulator and advice a consultant sells? Why does a new business need a government permit for something that was legal last year?