The internal probe is being carried out by the authority's local safeguarding children board following an inspection by Her Majesty's Inspectorate of Constabulary (HMIC), which highlighted failings with the way children in residential care who are at risk of CSE are dealt with by authorities.
It comes just weeks after South Yorkshire Police came under intense criticism after an investigation into child sexual exploitation in nearby Rotherham - just 12 miles away from Doncaster - estimated there had been 1,400 victims in the town between 1997 and 2013.
News of the review - which features in a progress report into the state of children's services in Doncaster set for discussion at a council meeting next week - comes just days before children's services at the authority are due to be transferred to an independent trust.
The report reveals that an HMIC inspection of South Yorkshire Police's work on safeguarding children, which was carried out in May but is yet to be published, found "failings" in the way the council and South Yorkshire Police had responded to the cases of "a small number of children" in a Doncaster Council children's home.
The report admits that prior to January 2014, there was no dedicated team working on CSE in Doncaster, but says the authority has now brought specialist CSE police officers and social care practitioners together with other professionals to form one CSE team.
"Since [the HMIC inspection], we have reviewed the way we work together and have focused attention on improving our response to concerns around child sexual exploitation," the report states.
However, recruiting professionals to tackle CSE has proved an issue.
The report reveals there was initially only one social worker in the CSE team, working alongside five detective constables, a detective sergeant, a senior education welfare officer, a worker from Barnardo's and a health worker funded from public health.
Since July, the authority has agreed funding for an additional three social worker posts and a team manager post, but the posts are yet to be filled permanently - there is currently an interim team manager and two agency social workers in place.
The report adds that the review being conducted by Doncaster Safeguarding Children Board will assist the authority in its future work on the response to child sexual exploitation.
Details of the review form part of a progress report into improvements made within children's services at Doncaster between July 2013 and September 2014.
The report, by director of children's services Eleanor Brazil, points to good progress overall, but concludes that there are a number of areas for further improvement, including the long-term response to children at risk of child sexual exploitation, quality of provision for young people leaving care, and recruitment and retention of staff.
An independent trust that will run the majority of children's services in Doncaster is due to launch on 30 September.
Plans for a trust were first announced by the government in July 2013 in order to create a "decisive break" from serious child protection failings at the department dating back to 2009, when it was placed under government supervision.
A report by Alan Wood, president of the Association of Directors of Children's Services (ADCS), who acted as commissioner of the trust during the set-up process, reveals that establishment of a trust has cost about £6.5m.
Eleanor Brazil said: "The sexual exploitation of children is a problem in all towns and cities and Doncaster is no different.
"It is a very complex issue that is difficult to tackle as often it remains a hidden issue with people failing to recognise signs of abuse and victims being reluctant to come forward.
"Sexual abuse is an issue we have been aware of for many years and we are committed to tackling vigorously.
"Doncaster Safeguarding Children Board, like others up and down the country is considering our working arrangements to ensure we are doing everything we can to tackle these dreadful crimes.
"We have made good progress and will continue to make necessary improvements to support our vulnerable young people.
"We are working hard to encourage people and organisations to report any concerns, all of which are taken extremely seriously and investigated fully."
