The 6.x version of this module provides default abuse flags for nodes, comments and users and gives an administrative interface for reviewing and resetting said flags.
In the 7.x version of this module we're working on allowing it to work with any type of flag in the same capacity.
It works by giving a new permission for a role to be able to reset flags. If a role has this permission, the flag is changed to say 'Reset' instead of whatever the default text may be. When that user clicks this it resets all of the abuse flags on that object and makes to that it cannot be flagged as abuse anymore.
Development sponsored by Lullabot