This bill mandates that any public entity in South Dakota, including state agencies, boards, commissions, departments, and educational institutions, must undergo a forensic audit if there is probable cause of financial misconduct, such as fraud or embezzlement. The Department of Legislative Audit is responsible for conducting these audits, although they may authorize independent auditors with expertise in forensic accounting to perform the audit. The forensic audit will involve a thorough examination of financial transactions, evaluation of internal controls, documentation of any findings related to financial misconduct, and recommendations for preventing future irregularities.

Additionally, the results of the forensic audit must be reported in accordance with existing law, and any costs incurred for the audit will be the responsibility of the public entity being audited. This legislation aims to enhance accountability and transparency in the management of public funds by ensuring that financial misconduct is thoroughly investigated and addressed.