An independent review has been launched to see whether budgetary controls at Sydney Water are ship-shape.

The metropolitan NSW water corporation will have its IT and marketing expenditure probed in the audit announced by NSW Minister for Finance and Services Andrew Constance this week.

The audit was sparked by allegations of free-flowing use of the Sydney Water bank account, including a $7 million spend on the company’s website.

In a statement on Monday Mr Constance said: “the New South Wales Government is determined to place downward pressure on the cost of living, and water bills are an important part of that commitment... Sydney Water approved a new IT strategy in May this year, with a clear focus on driving efficiencies in this area, and this audit will ensure the organisation is on track to meet that commitment”

The audit is set to be far-reaching, but will almost certainly scrutinise the utility's significant $56.57 million budgetary allocation for IT projects this financial year.

“As a government we must live within our means and I am determined to drive efficiencies that deliver better value for Sydney Water customers,” Mr Constance added.