1. The auditor or his or her authorized representatives may audit all or part of any political subdivision or other governmental entity:
(1) If, after an investigation of the political subdivision or governmental entity under section 29.221, or its officers or employees, the auditor believes an improper governmental activity has occurred; or
(2) When requested by a prosecuting attorney, circuit attorney, or law enforcement agency as part of an investigation of an improper governmental activity.
2. The costs for all audits initiated under this section shall be paid out of the state auditor's budget.