maybe in my lack of wisdom but if financial statements do not include costs i do not take them to be a fair representation. i would think that any financial statements would have an accrued payable and accrued expense to include any salary not paid. it is a simple debit credit type of thing. Otherwise, companies could make up their own set of accounting principles.
i would say fraud is a bit of a stretch because they did state the financials are for management purposes only but to not include expenses is a bit of a stretch - even for management purposes. I would use the words "materially misleading".
an auditor would not include the deviance as you put it in the footnotes only. the opinion letter, assuming the cost is material to the p&l, would state that the company is not following generally accepted accounting principles ( matching principle ) but in reality the accrued salary number would be recorded and this company would be showing another loss.
185k of salaries is not that much if you assume they have a few people working in the field. some big boys are left out - doesn't matter who they are, they are not in the financials, which makes your 21 multiplier materially understated.
all imo
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