I'm surprised that after 78 views over 11 days there hasn't been a single response.
I may have found a solution using Spotlight and Smart Folders.
Instead of starting off creating a new Smart Folder, I just simply used CMD-F and designated my search for the eSATA drive where I keep my music backed up. Then I was able to implement filtering to narrow down my choices and save into a new folder:
Kind / is / Music All +
File Extension / is / m4a
File Size / is greater than / 20 / MB
This is an imperfect solution. There just doesn't seem to be a way of differentiating an m4a file based on the encoding scheme. The Finder would have to actually read into the file to uncover these attributes, i.e. lossless or lossy codec, but cannot because that information is held within the m4a container. My only option was to assume a file larger than 20 MB had to be a lossless ALAC file, and while that's probably true it doesn't mean a file less than 20 MB is certain to be a lossy format. At least I will have resolved the vast majority of the issue. Now I can batch convert these files into FLAC format with the excellent XLD freeware file conversion app. Anything that slipped through the cracks will eventually be found and handled on an individual basis. 154 files were corrected.
Hope that helps the 2 guests who have noted they have the same question, thus far.