As I am aware the best approach is to configure the agent using PHP agent (newrelic.ini) settings, the is the option newrelic.loglevel where you can set the log level. Although you can still use the error_reporting() to 'overwrite' those settings a relevant question / answer can be found here.
So as from my experience, there are some occasion that this is not working as I expected.
Some time when a fatal error occurred, the php agent was unable to track it. Also there where times that new relic was resetting the options I have put using the error_reporting() to the 'default' ones I have set via newrelic.loglevel.
Disclaimer : I have over a year to use new relic so this may be obsolete.
My opinion is not to mix the these two different ways of setting the error level and stick with the API that the php agent provides. I think that in most of the cases this is going to be enough