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Option C exception reports are created for any files with either Warnings or Errors.  Warnings are minor issues that should be corrected but are not serious enough to cause the file to fail validation.  

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The exception report is stored in the same folder as the file you validated. The exception file’s report file name is “exception_” followed by the name of the file that was validated. For example, the exception report for file A01234.txt is named exception_A01234.txt.