'The person who paid for it is stuck in the middle, says i paid for it in good faith & just wants to carry on there business.'
I am afraid it is a case of "caveat emptor" let the buyer beware. In all seriousness if I am approached in a pub and offered a watch valued at £1000 for £50, there are two possible scenarios either it is a fake or it is stolen.
In the same manner if a business wants quotes for an FRA and one quote is for £750 and another is for £75, someone should be asking the question why? what am I getting? and who is doing it? As it is, the accountant or financial director, will say go for the cheapest quote.
If the EA then says 'there, there we know the FRA is c**p but we understand you paid for it in good faith, so it is alright' what is going to happen. Businessman A who paid £75 for his FRA turns to businessman B who paid £750 for his and says 'you idiot, I got mine for a tenth the price of yours and the Fire Brigade says its OK.'
On the other hand if the EA says 'the FRA is c**p, get a proper one done' the business either has to get hold of the person who did the FRA and get them to do a satisfactory one (if they can) or get someone else in. As in the scenario above Businessman A now has to pay out £75 for the rubbish and then £750 for the competent one plus a lot of time and worry getting it sorted, next time Businessman A will go for the better FRA.
What happens then is the business community starts to ask how can we tell who is competent and who is not? The answer is, the various registers.
In the natural world a herd of grazing animals needs predators to kill off the weak and sick members of the herd and promote a health herd.
In our case we need the EAs to penalise the bad FRAs to encourage the good ones and drive the standard up. If they don't all that will happen is businesses tend to go for the cheapest and the standard will fall.