Everyone knows that once you've addressed a problem it goes away forever and no further attention ever has to be paid to it. That's how we fixed racism in the United States back in the 1960s!

Yes. This is an actual systematic issue in private sector services.

Rather than regulatory body “random” selection for audit, private sector actually gets say in who is picked for their own audit, and if those auditors “find things” those auditors are no longer picked, and thus lose their jobs.

I don’t know if child labour auditing is specifically impacted by this issue, but most definitely other forms of audit and bargaining are.

I’d think that proven success (“there used to be a pervasive problem but now we are presenting it from manifesting”) would provide good job security. If structural changes were made, that would make auditors less necessary, but it’s not like the auditors are the ones that create the governmental rules around ID checking. They might lobby the issue, but it would be tough for them to advocate for less strict rules without seeming openly hypocritical.