The auditor-general has agreed to examine a $60 million federal sports grant program, after Labor complained about a giant novelty cheque handover by a candidate.
Georgina Downer, the Liberal candidate for the South Australian seat of Mayo, was pictured on social media handing out the prop cheque emblazoned with her image and name for more than $125,000 at a bowling club.
Shadow attorney-general Mark Dreyfus wrote to the Auditor-General, Grant Hehir, asking for the matter to be investigated.
Mr Dreyfus said he understood Ms Downer made the announcement to the Yankalilla Bowling Club before the local MP, independent Rebekha Sharkie, was made aware the funding had been granted.
Ms Sharkie had helped the bowling club seek the grant.
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"It is absolutely correct that the Audit Office have agreed to investigate this matter," Mr Dreyfus told AAP.
"Ms Downer's actions made a joke of a taxpayer-funded program and show how desperate the Liberal Party are."
He urged the auditor to look at similar examples.
Mr Hehir said in his letter to Mr Dreyfus the audit would focus on whether the Community Sport Infrastructure Program was "informed by an appropriate assessment process and sound advice".
An initial $29.7 million was set aside in the 2018 budget and a further $30.3 million was made available in December.
Ms Downer, the daughter of former foreign minister Alexander Downer, was comprehensively beaten by Ms Sharkie at last July's by-election but will try again at the upcoming general election.
