A forensic audit prompted the investigation into the Sioux Empire Fair’s former office manager, Kathy Gourley, who is now charged with embezzlement.

Forensic Auditing is a service that Eide Bailly says is increasing in popularity. And it may be linked to the economy.
A typical financial audit involves a company's books. A forensic audit, like the one conducted at the Sioux Empire Fair, digs deeper. They double and triple check every transaction. And lately they've become more common.

Jason Olson of Eide Bailly forensic services says there's a direct link between his work and the troubled economy. Tuesday, he delivered sour news to Minnehaha County Commissioners, and he says they're not alone. As financial pressures increase on families, more people are looking for ways to ease that strain.

"Sometimes the only way to find those additional sources of incomes is through illegitimate means, which is one of the items forensic auditing or accounting audit reviews and tries to determine," Olson said.

Olson says fraud and embezzlement are even more likely when that financial pressure is teamed with opportunity.
"If you have one person doing most of the accounting duties, if there's a lack of checks and balances that would be one area in which you might want to take a look to see if there might be some issues within your accounting at your office," said Olson.

Through his work, Olson says he's seen that just about anyone could crack under pressure and turn to fraud. 

“If a person has an opportunity within the company, or a perceived opportunity along with that financial pressure, that can definitely turn someone that's an honest individual within a company to become dishonest,” said Olson.

As for fraud and embezzlement, a 2006 study found that most cases involved small businesses with an average amount of $190,000 taken.

Fraud Warning Signs