Sr Sgt Dinnissen said the men had clearly aggravated or antagonised other people in the cinema.
"With the current environment, there's only so much stupidity you can tolerate."
Locals took to social media to vent their views over the incident, which sparked mixed reviews.
"A pretty inappropriate joke, not funny at all... and yes, I do have a sense of humour," one person said.
Another questioned why police needed to be involved.
"Do we really need the police involved in bad comedy, it is pathetic," another said.
"They should have just been asked to leave....don't think the police needed to be involved."
Police said no further action was taken.
Isis is also the name of the rehabilitation centre at Wakari Hospital in Dunedin.
ISIS - standing for 1 Site 1 Service - is one of the acronyms by which the group is known.