It seems that both the Report and Denial canned reasons are bundled together.
The problem is that this means that regular members (that are not moderators) can also choose a "denial" reason when in fact they should be made available to only forum moderators to use when denying post (from newly registered users) than regular members simply reporting a problem with a post.
In our forum we have added custom denial reasons, and well it's kind of awkward that the list of canned denial reasons is made available to regular members trying to report a problem with a post or PM and etc.
I think there should be a check-mark option to be able to mark the ones only made available for either the "denial" or "report" reasons (or combined). This way only forum moderators can select the "denial" canned reasons when disapproving a post. And regular members only have the "report" canned reasons too choose from.