THE ABC will review its approval process after the furore provoked by the "Making A Realistic Wish Foundation" sketch screened on The Chaser's War On Everything on Wednesday night.

The sketch, in which children playing terminally ill patients were told their Make-a-Wish-style requests were excessive, was condemned by the Prime Minister and talkback radio yesterday. It was cut from versions rescreened on ABC2 and online.

"The usual [vetting] processes were put in place around this program, but the red flag didn't go up. We could see today, that that was the wrong judgment call," the network's managing director, Mark Scott, told ABC Radio. "It is a challenge for those people who finally have to exercise judgment around this content."

Cast member Craig Reucassel apologised for what he described as "black comedy" and encouraged people who were offended to donate to the Make-a-Wish foundation. "This is the nature of comedy. Sometimes you offend people," he said. "We certainly weren't intending to offend the Make-a-Wish Foundation."

Ron Delezio, the father of burns survivor Sophie Delezio, called for the show to be axed. The Opposition described it as "deeply offensive".

The Prime Minister, Kevin Rudd, condemned the sketch and the team behind it. "These guys collectively should get up and hang their heads in shame," he said. "It's just wrong."

Chris Taylor, who was in the sketch, called the foundation to explain the joke. Mr Scott rang executive producer Julian Morrow to have him explain the joke.

In a joint statement, Morrow and the ABC's director of television, Kim Dalton, said The Chaser was "a satirical program aimed at provoking debate and providing social commentary on topical issues" but did not explain the sketch in that context.

The Make-a-Wish Foundation said the sketch "misrepresented the motives of the children and families that apply for wishes. The implication that sick children … request unrealistic wishes is offensive."