It would depend on how closely the returns were audited, if two sets of books were used to show profitability (to get loans) and losses (to avoid taxes).

I know that when the WA State Auditor did audits on some WDFW programs, they looked at whether or not the money was accurately recorded. They did not, for example, look at whether the funds were spent as intended but only did they have documentation for the expenditures.