The British charity has bought in an accounting firm to investigate “financial irregularities” when it was trying to help hundreds of thousands of flood victims in the southern province of Sindh.
A preliminary investigation has cleared its own employees of wrongdoing and the inquiry was focusing on Pakistani charities which worked alongside Oxfam.
PricewaterhouseCoopers has been appointed to carry out an audit and will report back in three to four weeks.
The charity raised more than £39 million to help victims of what the United Nations said was the worst natural disaster it had ever seen.
Less than two per cent of that money, around £500,000, was now being investigated, Oxfam said in a statement.
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