Given that the self-styled sheikh was facing 37 new sex charges and an existing charge of accessory to murder, an observer might have expected some heated debate - or at least extended discussion - about whether he should remain on bail.

But on this occasion, the Coroner's Court has heard, a deal had already been done that meant Monis' continued freedom was virtually assured.

The inquest into the siege was told that the night before the October 10 court hearing, the solicitor from the Office of the NSW Director of Public Prosecutions reached an agreement with Monis' solicitor not to challenge his release on bail.

And he did so without reading the official statement of facts in the matter.

"Do you accept that it is an extraordinary proposition to agree with defence to grant bail on 37 new sex charges and accessory to murder when you hadn't read the facts?" Gabrielle Bashir, SC, representing the family of siege victim Tori Johnson, asked the prosecutor.

"No I don't because I'd spoken to the officer in charge," the prosecutor, whose name has been suppressed at the request of the DPP, said.

"I put to you that you should never have proceeded in that fashion," Ms Bashir continued.

"I reject your proposition on the basis that I had the opportunity to discuss the facts and the new charges with the officer," the prosecutor said.

He said that, having spoken to the officer in charge about the case, he had formed the view that any attempt to have Monis' bail revoked would be futile.

This was because, as far as he knew, Monis had adhered to all of his bail conditions before the new charges were laid.

"I believed that at the time I made the decision I had the authority in accordance with my discretion," he said.

"It's the typical type of decision a lawyer is expected to make in the process of their practices."

The revelation that the alleged murder and a number of the sex offences had occurred while Monis was on bail for other offences did not change matters, the prosecutor said.

"The fact was that, for the past 12 months, he had adhered to his conditions," he said.

But Ms Bashir was not convinced, pointing out that there was other information about Monis' matters that he could easily have accessed.

"Do you agree that you should have informed yourself as to what happened on the bail applications on December 2013 and May 2014 by requesting a transcript before giving any advice, even informal, about bail on the homicide matters?" she asked.

"I reject that proposition," the prosecutor replied.

Nevertheless, the inquest heard that such deals are commonplace among prosecutors and defence solicitors in the NSW justice system.

Counsel assisting the inquest, Jeremy Gormly, SC, put it to the prosecutor that he should have made the court fully aware of the very serious nature of the new charges against Monis.

"This was a person engaging in a particularly manipulative form of sexual behaviour on a number of women over a prolonged period of time," he said.

"I made an appropriate and reasonable response using my discretion as an officer of the DPP," the prosecutor said.

Mr Gormly also put it to the prosecutor that the discretion of DPP officers should be more tightly controlled and defined.

The prosecutor disagreed.

The inquest continues.