The biggest problem I've encountered with doing and reviewing Atterbergs (and I have done many) is that the tech is not really diligent about making sure that ALL of the material that is chosen for the test that CAN be broken down IS broken down for the test. What happens is, the tech gets complacent and leaves a few hard clods that he struggles with. Those clods that are hardest to break down may contain higher plastic materials that can seriously skew the results. Make sure that the material retained on the #40 is "retained" for later review. For that reason, I am very careful in splitting up the sample and make sure to limit the amount to just what is needed for the test.
This would be a much more compromising problem if one was to break down the material over the #200. The test procedure and the interpretation of the test should be carried out according to the accepted standard of the jurisdiction you are working. Any deviation from that standard needs to be stated in the report. I can't imagine using a wet sieve method to breakdown the -200.
It should also be pointed out that doing the test by starting out at insitu moisture content is possible and is often preferable. Just make sure to sieve a representative portion to confirm that there is little or no material that would otherwise be retained on the #40. This method may ruffle some feathers, however, I have done comparisons using both methods and have achieved good, repeatable results.