The authentication required is down to how it must be done as described in the LTI 1.1 (http://www.imsglobal.org/LTI/v1p1/ltiIMGv1p1.html) implementation guide.
In particular (from LTI 1.1 impl guide), pay attention to section 4: LTI Security Model and section 6.1: LTI Basic Outcome Service.
Quick summary of requirements, I believe (as per section 4.3: Security for application/xml Messages):
We highly recommend that implementors use a reliable OAuth standard library for their particular platform to do the signature generation and verification, rather than attempt to implement the OAuth signing/verification algorithm on their own.
Note that the Oauth parms in this case get transmitted in the request HEADER and not in the body data. The IMS spec itself contains an example of what the body should look like (sec 4.3, see link above):
POST http://www.imsglobal.org/developers/BLTI/service_handle.php HTTP/1.0
Host: 127.0.0.1:80
Content-Length: 757
Authorization: OAuth realm="",oauth_version="1.0",
oauth_nonce="29f90c047a44b2ece73d00a09364d49b",
oauth_timestamp="1313350943",oauth_consumer_key="lmsng.school.edu",
oauth_body_hash="v%2BxFnmDSHV%2Fj29qhxLwkFILrtPo%3D",
oauth_signature_method="HMAC-SHA1",
oauth_signature="8auRpRdPY2KRXUrOyz3HKCs92y8%3D"
Content-type: application/xml
<?xml version = "1.0" encoding = "UTF-8"?>
<imsx_POXEnvelopeRequest xmlns = "http://www.imsglobal.org/services/ltiv1p1/xsd/imsoms_v1p0">
<imsx_POXHeader>
<imsx_POXRequestHeaderInfo>
<imsx_version>V1.0</imsx_version>
<imsx_messageIdentifier>999999123</imsx_messageIdentifier>
</imsx_POXRequestHeaderInfo>
</imsx_POXHeader>
<imsx_POXBody>
<readResultRequest>
<resultRecord>
<sourcedGUID>
<sourcedId>3124567</sourcedId>
</sourcedGUID>
</resultRecord>
</readResultRequest>
</imsx_POXBody>
</imsx_POXEnvelopeRequest>