Here in Financial Regulation Matters we have focused on the Private Finance Initiative (PFI) marketplace on a number of occasions, and we have looked at the conduct of the leading auditors on many occasions too; in today’s post, the focus will be on the relationship between the two, which will provide with an overview of recent turbulent events within the marketplace and the potential, albeit a very slight one, of the contagion within the industry causing either a massive organisation to fail, or more probably their regulator to collapse. We looked at the concept of the PFI late last year and discussed how the injection of private interest into the public sphere is perhaps the most obvious of examples of how one can, purposefully or otherwise, examine the theory and neglect the reality. Whilst we looked at how the ideology was creeping (although that word perhaps downplays the actual situation) into publically vital sectors like the NHS – Virgin’s recent consolidation in this...