Yargin nods at Kat's explanation, but frowns as she finishes. He steeples his fingers in front of himself. The gnome looks like he's smelled something foul.
"I'm afraid there must be a mistake," Yargin says. "You see, there was an inspection just two days ago, regarding the same matter."
Kat can tell that Yargin is lying.
The purse has clearly been torn open, with roughly half remaining. The inside is mangled, as if it had been sliced multiple times, with bits of fabric torn open in a way that suggests the purse once held some sort of hidden pocket or similar, which was then destroyed and emptied.