If not reported appropriately, what must the auditor identify?

The auditor must identify the net overpayment or underpayment when claims are not reported appropriately. This is crucial because identifying the net financial impact of improper reporting helps the practice understand how much they may have been overpaid or underpaid by payers due to inaccuracies in coding and billing. By recognizing these discrepancies, the auditor can guide corrective actions and ensure compliance with regulations, ultimately leading to better financial accountability and risk management within the practice.

In contrast, while total claims, error types, and revenue losses are important components of the auditing process, they do not directly pinpoint the financial implications of reporting inaccuracies in a way that impacts the bottom line, which is why identifying the net overpayment or underpayment is of primary importance.