The Office of the Auditor-General could take "weeks or months" to decide whether it should investigate the failed Mudtopia festival.
The Rotorua District Residents and Ratepayers group has asked the Office of the Auditor-General to investigate the event.
From the potential for tonnes of South Korean mud to be imported for the festival, to claims about 10,000 free tickets were given away and the more recent revealing of a $600,000 loss.
The residents group outlined 19 concerns and eight questions in its request for an inquiry and said there had been "significant financial concerns and governance flaws" in the delivery of the festival.
When asked about the request, the Office of the Auditor-General confirmed the group had written to the office and referred the Rotorua Daily Post to its website where the process of a review was outlined.