The wool industry's embattled marketing and research body will undergo a comprehensive audit amid accusations of poor management of public money.
Senators from the Rural and Regional Affairs and Transport committee this morning referred Australian Wool Innovation (AWI) to the National Audit Office (NAO), which can access information not listed in annual reports.
It comes after a string of scandals that have engulfed the organisation in recent months.
Farmers have accused AWI of a toxic culture and called on the Federal Government to cut its funding.
AWI received almost $75 million from wool growers and taxpayers last year.
The ABC understands senators met with officials from the NAO to discuss possible investigations.
Multiple sources have confirmed to the ABC that the NAO investigation will assess AWI's corporate governance and transparency surrounding its spending.
AWI not informed before media reports
An AWI spokesman said the organisation was "aware of the media reports" that it would be referred to an audit.
"AWI has not been advised of any inquiry or audit," he said.
"AWI welcomes any review of its business operations, governance and the benefits we deliver to Australian woolgrowers."
Senators on the committee have referred the ABC to committee chairman Barry O'Sullivan, but his office is yet to respond to interview requests.
