Stirling Council is to investigate an application by the provost to host Armed Forces Day 2014.
It emerged on Thursday that the civic leader formally asked a defence minister to consider the city several months before a decision-making committee was informed.
The event on June 28 is expected to cost £250,000 to stage and clashes with a commemoration of the Battle of Bannockburn.
Provost Mike Robbins applied to the Minister for Defence Personnel, Welfare and Veterans, Anna Soubry, days after a civic meeting which does not have the authority to spend council taxpayers’ cash.
The Ministry of Defence (MoD) then named Stirling as the host city weeks before councillors were given an opportunity to scrutinise the bid.
On Thursday, Stirling Council’s audit committee unanimously agreed to undertake an investigation into the application process.
Deputy leader of the SNP’s opposition councillors Steven Paterson welcomed the probe.
“I am particularly concerned at the actions of the provost in this matter, since information provided by officers to today’s meeting appears to show that he did not act with the proper authority in applying for this event,” added the councillor.
The Audit Committee members include SNP councillors Scott Farmer, Graham Houston and Jim Thomson and Stirling’s sole Green Party councillor Mark Ruskell.
Conservative councillor Neil Benny and Labour’s Corrie McChord, whose parties form the administration, also voted for an investigation.
Councillor Benny said: “The SNP have got a bee in their bonnet about process issues around the Armed Forces Day and are seeking to make an unjustified political attack on the provost because of it.
“I think a review will help to clear the air and draw a line under it so we can focus on what is a huge honour for Stirling – the hosting of National Armed Forces Day.”
A spokesman for Stirling Council confirmed that at a meeting of the Audit Committee “notes with concern issues surrounding governance and transparency in the application to host National Armed Forces Day in 2014.”
He added: “Committee therefore requests officers to conduct a full audit into all aspects of the application for and arrangements to host this event, in order that these concerns can be addressed and this process understood.
“Officers will now consider how best to take this forward.”
A spokesman for the MoD declined to comment.