HUNDREDS of files are being reviewed and an audit of every diocese in the country is on the cards as the Anglican Church deals with the fall out of a damning royal commission inquiry.

The Anglican Church's disciplinary system will be challenged in the New South Wales Supreme Court today, by two Newcastle priests who are facing being stripped of holy orders.

The Anglican Diocese of Bathurst is liable for a $40 million loan from the Commonwealth Bank and may have to sell off property including schools to meet the debt.