A senior QC has been appointed to investigate whether Peter Hain misled the High Court over the interim victims commissioner appointment.
Peter Scott was appointed after Mr Justice Girvan asked the Attorney General to investigate the case.
The judge ruled that Mr Hain acted "for an improper political purpose" in appointing Bertha McDougall.
He sent Attorney General Lord Goldsmith questions to see if Mr Hain or his staff perverted the course of justice.
On Monday, Lord Goldsmith set out the terms of reference of the inquiry.
Mr Scott will examine Mr Justice Girvan's concerns - in particular the way in which the government carried out its obligation of candour in the judicial review procedure.
The Attorney General's office said Lord Goldsmith had asked that Mr Scott report to him as soon as is possible "consistent with the need to conduct a thorough review".
The secretary of state said he and his department would cooperate fully with the review.
He said: "I welcome this review. I appointed Bertha McDougall to prepare a report for me as important preparatory work ahead of the appointment of a permanent victims commissioner.
"This is to ensure the crucial work on behalf of victims can have the best possible start.
"I make no apology for that. There is absolutely no question of any deliberate attempt to mislead the court or anyone else."
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