Processing error or misstatement: how we draw the line

A transposition in a workshop invoice that the handler then copied into the worksheet is a processing error. Paying a related workshop at a rate the file never supported, after an authority was stretched, is a different conversation.

We do not run a fraud investigation unless the engagement says so. We do classify exceptions so the client can decide what to do next. The classes we use are practical: unsupported, arithmetical, policy-response, authority, duplicate, and recovery missed.

Misstatement, in the sense a financial auditor of the company would use the word, needs intent or at least a presentation that conceals. Most claims leakage we see is neither. It is tired handling, weak review, and a diary that rewards closure over accuracy.

That distinction matters in the report. A claims manager can train for error. Internal audit and employee relations handle the other kind. Mixing the two in one paragraph helps no one.

Discuss a batch of files