Retaining an economist or forensic accountant in a fraud or embezzlement matter means agreeing on the period to be reconstructed, the mechanisms suspected, whether the funds are to be traced forward, and the form the result must take: a civil damages figure, a restitution figure, or both. The records request is broad and immediate, because bank records, the general ledger, and supporting documents are the reconstruction, and the engagement letter should address privilege and the chain of custody for records the expert receives.
Checklist
Run the conflict check on the victim entity, the suspected individuals, and counsel
State the period, the suspected mechanisms, and whether tracing is in scope
Request bank statements, cancelled checks, wire records, and the general ledger for the full period
Obtain vendor files, payroll registers, invoices, and approval records
Address privilege, chain of custody, and how records will be received and stored
Questions to ask the economist
How do you organize the reconstruction so each transaction ties to a bank record or third-party document?
How do you handle periods for which records are missing or destroyed?
How do you present the direct loss, consequential losses, and traced assets separately?
How do you coordinate with a parallel criminal proceeding or an insurance claim?
Timeline
About one week for retention and the records request, then three to eight weeks of reconstruction depending on the length of the scheme and the volume of transactions, then one to two weeks for the draft and final report.
Required documents
Bank statements, cancelled checks, and wire and deposit records for the period
General ledger detail, payroll registers, and vendor master files
Invoices, approvals, and supporting documents for the suspected transactions
Records of consequential effects and any insurance or restitution correspondence
Common pitfalls
Limiting the records request to the internal books, which the scheme may have altered
Scoping the period too narrowly, so the reconstruction stops where the scheme began
Failing to address chain of custody, which the opposing side raises to challenge the reconstruction
How does the expert deal with records the suspected individual controlled?
By confirming every amount against records the individual could not alter: bank statements, cancelled checks, and third-party documents. The internal books are used to map the mechanism, but the loss figure rests on the external records so it withstands the argument that the books were manipulated.
How does the engagement handle privilege and a possible criminal referral?
The expert is retained through counsel so the work product is prepared at counsel's direction, and the engagement letter addresses how records are received, logged, and stored. If a referral to law enforcement or an insurance claim is expected, counsel decides what is shared and when. The reconstruction is built so it can serve either proceeding without being redone.
How long does a reconstruction take?
About a week for retention and the records request, then several weeks of transaction-level work depending on the length of the scheme and the volume of activity, then a draft and final report. Bank records that arrive in electronic form move faster than paper statements, and the schedule lengthens for each account and year added. A preliminary estimate can be provided before the full schedule is complete.
References
Association of Certified Fraud Examiners. (n.d.). Association of Certified Fraud Examiners. Retrieved August 27, 2026. acfe.com