As others have said, having documentation to show the source of every entry on the LAR is a compliance internal control. Compliance internal controls are designed to either reduce the risk that regulatory violations will occur or to identify when they have and implement appropriate corrective action. Failure of that control does not mean you have a regulatory violation, but it does mean you have increased potential of violations. If that control is in place and operating effectively, your risk of violations is reduced to acceptable levels.
Jim Bedsole, CRCM, CBA, CFSA, CAFP
My posts - my opinions