The cross-party group of MPs is calling on organisations and professionals to submit their views on what the purpose of inspections should be, the impact of the inspection process on improvement and the performance of Ofsted in carrying out its work.
The consistency and quality of inspection teams in Ofsted and the weight given to different factors within the inspection process will also be considered.
Responding to the launch of the inquiry, an Ofsted spokesman said: "People tell us they value our work in driving improvement, empowering parents and service users, and keeping children safe. We have continually cut costs and provide good value for the taxpayer.
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