What must an auditor detail if a legally definable error is found after an audit?

When a legally definable error is discovered during an audit, it is essential for the auditor to provide a rationale for any error or code change. This rationale serves multiple purposes; it helps to clarify the reasoning behind the identified error and provides evidence supporting the need for any modifications in coding or billing practices. Additionally, documenting the rationale aids in ensuring compliance with both legal and regulatory standards, as well as facilitating corrective actions or adjustments.

Including the rationale not only demonstrates the auditor's due diligence but also builds a transparent audit trail, which can be critical if the findings are later challenged or reviewed. It allows all stakeholders to understand the basis for decisions made regarding the error, ensuring accountability and clarity. This comprehensive detail contributes to improved auditing processes and enhances the integrity of the overall audit findings.

While other aspects like financial impact or details of involved parties may be important in certain contexts, they do not provide the essential explanation required for addressing the error. Thus, focusing on the rationale aligns with the auditing best practices and legal requirements.