The federal Department of Education has been ordered to hand over documents relating to a controversial $2 million government grant awarded to a trades training school linked to former Family First senator Bob Day as the Auditor-General weighs up whether to launch a full investigation.

The department handed over dozens of documents relating to the grant last week after the order came down from Auditor-General Grant Hehir earlier this month, Fairfax Media can reveal.

Bob Day, right, at North East Vocational College with Simon Birmingham in 2015. Credit:Facebook

Mr Hehir is assessing the documents and will meet with senior departmental officials this week before deciding if the episode warrants more scrutiny, sources close to the matter say.

The shadow attorney-general Mark Dreyfus has asked Mr Hehir for an investigation after Fairfax Media revealed the government gave the $1.84 million grant to the North East Vocational College in Adelaide after Mr Day lobbied a number of ministers for the cash to fund his pet "student builders" project.