The controversy has spurred calls for Wolfowitz' resignation, and he is fighting to hold on to his job.
He maintains that he acted in good faith in arranging Riza's remuneration, and accused critics of a "smear campaign" against him.
"Wolfowitz must resign because... his act of favouritism for personal interest was wrong"
Ibby, Mumbai, India
Send us your views
The bank's executive directors, however, have said the terms and conditions of the package had not been "commented on, reviewed or approved" by the bank's ethics committee, its chairman or the bank's board.
People familiar with the findings said Wolfowitz will be given a chance to respond before the report is forwarded to the bank's board.
But Robert Bennett, his lawyer, said they have asked until next Monday to respond, saying the 48-hour response time was "unreasonable and unfair".
The developments come as Kevin Kellems, a top adviser to Wolfowitz, said he was leaving the institution "for other opportunities".
A panel that presented its findings to Wolfowitz is also believed to be examining other employment arrangements, including Kellems's.