Just wanted to get some opinions and experiences on an issue I'm having at work.

First, a little background. I've been working at a company for some time (past any probation periods) and rewriting a horrendous system. No tests, incomplete and broken functionality everywhere, enough copypasta to feed a small village, redundant code, more unused SQL tables than used ones and terrible performance. I've never seen such bad code, pretty much all of it is worthy of being posted on TheDailyWTF. The company has been operating for a number of years and have had a string of bad developers working on this system.

I made a call on rewriting instead of refactoring since I judged it to be less work overall and decided that the result will address the requirements more appropriately, since the central requirement is to have a future-proof system for the next decade with plenty of room to scale up. Refactoring would have entailed untangling a huge ball of yarn and at the same time integrating it with a proper foundation or building a foundation from scratch.

I've introduced the latest spiffy framework, unit & functional testing, CI, a bug tracker and agile workflow to the environment. I've fixed most of the performance issues of the old system (there were no indexes on any of the tables, for example). I've created an automated deployment process for the old system. The CTO has been maintaining the old system while I have been building the new one and he has been advising management that everything is being done as per best practices. However, management is hiring a contractor to come in and verify my work. In my experience, this is unprecedented.

I can understand their reasoning to an extent, since they've had bad luck in the past, but can't help but feel somewhat offended at the fact that they distrust two senior developers who have been working with them for some time enough that a third party is being brought in. And it's not just me who is under watch - people's emails are constantly checked, someone had a remote desktop application installed on their computer of which I was asked to check the usage logs to try to determine if they were stealing sensitive data and there are CCTV cameras in one of the rooms. It's the first time I've decided to disable my Skype history at work.

Am I right to feel indignant here? Has anyone else ever encountered such a situation? If so, how did it work out in the end? Was it worth sticking around? Should I just find another job?