Which statement is false regarding the financial error rate in a Claim Review under a CIA?

The statement that the net financial error rate calculated was under 10%, which indicates that there is no need to conduct a Full Sample, is accurate in the context of a Compliance Investigation Agreement (CIA) where review processes are governed by specific thresholds.

When a financial error rate is below 10%, it suggests that the errors are relatively low, thus not necessitating a Full Sample review. In CIA terms, this means that if the error rate doesn't exceed this predetermined threshold, the compliance efforts can be deemed satisfactory, and further investigation may not be warranted.

Understanding the concept of thresholds is vital in compliance work, especially when it comes to determining the extent and scope of a review. This establishes a framework for efficiently addressing claims and potential issues while focusing the resources effectively to prevent unnecessary extensive auditing when not needed.

In a practical context, if the net error rate is below 5%, it's commonly accepted that the review process is complete, aligning with industry standards which aim to encourage compliance while fostering efficient use of resources.