"I know that's your mentality to think everything is a cover-up, but it's not, I want to be really clear", Cheika told reporters.
But Cheika also acknowledged that Beale and Adam Ashley-Cooper were dropped for bringing women back to their rooms.
The 30-year-old was named in the side by coach Michael Cheika on Thursday after being cleared to play by team doctor Nathan Gibbs following the neck injury he sustained in Italy last week.
Following one of the worst seasons in Wallabies history with just four wins from 13 tests, the chorus for change grows louder, with prominent ex-Wallabies publicly advocating for Rugby Australia to end Cheika's reign.
Australia have suffered significant disruption after their breakdown master David Pocock was ruled out of Saturday's final November global against England at Twickenham and two players were not considered for a breach of team protocol.
"The leadership group came to see me earlier in the week and asked me to deal with it in a way I thought was appropriate - and I thought this was the appropriate way".
The Wallabies have a strict team rule banning guests in hotel rooms and though the women were believed to be Ashley-Cooper's sister-in-law and two friends, who left well before midnight, it was considered a breach.
"They can't sit back and let this decline continue without someone deciding to take the bull by the horns, say this is unacceptable and we need to do something to turn it around", he said.
"She couldn't guarantee? You'd have to talk to her about those things", Cheika said.More news: Ball not aware of his greatness - LeBron
"It could be compared to not being on curfew or late for training", Cheika said.
"I didn't hear that", Hooper said.
"We are down to seventh in the world after starting at number three".
"They're playing blokes out of position".
"You've got to say that the team is more important than any of the individuals and that's the way it is".
It seems unlikely there will be any overhaul of the Wallabies environment but Castle said the review would be pivotal heading into a World Cup year.
Gibbs, a former rugby league forward, infamously refused to allow Wally Lewis to join a Kangaroos tour in 1990 due to a broken arm and is one of Australia's most experienced sports medicos.
"If you're not happy with the outcomes, which clearly we're not, then we've got to address the playing performance or the coaching performance or both but we can't address nothing", Dwyer said. "We all have to stand shoulder to shoulder", she said.