It seems like we agree on the consulting bit but she wasn’t a consultant, she was an employee. Expecting 8 hours of work from an employee in an 8 hour day isn’t the way things work.
In some other cases there can be a transitive issue: plenty of companies/industries bill by the hour, so need to be able to track how many hours each employee has worked on each job. One of those employees over-reporting hours worked would presumably open the employer to legal action for over charging. Accounting is one of those industries.
So in those cases it's not necessarily a matter she reported X hours, she gets paid X*$Y. Just that the accurate recording of hours is important for other legal reasons.