Glossary · Performance and reporting
An exception report lists items falling outside defined tolerances — accounts breaching drift bands, cash shortfalls, failed reconciliations, unusual fees.
It is how a firm supervises by exception rather than by inspection. Its usefulness depends entirely on the thresholds: set too tight it becomes noise nobody reads, too loose it reports nothing.
Questions this did not answer? Ask them directly — that is what the twenty minutes is for.