NRL salary cap auditor Ian Schubert first got wind of the anomalies at the end of last season, when the previous administration led by Watson was departing.
Schubert warned Watson he would be conducting a full audit in early 2006.
The new Warriors hierarchy, led by Kidd, then decided to go on the front foot. They told the NRL a week ago they had found irregularities themselves.
"The chief executive (Wayne Scurrah) called me last Monday and said 'I think we've got a problem'," Kidd said. "He was preparing for the NRL auditor ... they came across things that looked a bit, uh, unusual." It is understood the club is at risk of a $100,000 fine, although admitting their mistakes will be the one mitigating factor.
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