I don't think that is the proper interpretation of the data for the S3.

HP and torque numbers that manufacturers claim are those produced at the CRANK of the engine (before connecting to the transmission and the drive wheels).

When cars are tested on a dyno, what is measured is HP and torque produced at the DRIVE WHEELS. What is commonly known is that you can never transfer 100% of the HP/torque from the crank onto the drive wheels. There always is unavoidable power loss through the various components of the drivetrain (like the transmission, differentials, etc).

Historically, automatic transmissions with torque converter have always had more power loss through the drivetrain than manual transmissions. That is why an automatic transmission car historically has always been slower than the manual version of the same car. Same thing with AWD cars.....with more components, there is more opportunity to have less than 100% transfer of power from the crank to the drive wheels.

In other words, it is impossible to generate MORE HP/torque at the drive wheels than at the crank of the engine. The only explanation of the results of the S3 is that the engine of that particular S3 had much more HP at the crank than Audi has claimed.

Another example of this is the popular BMW 335i. It is rated at 300HP and 300lb-ft torque (in N. American spec). Yet many people have dynoed the 335i and found that the power figures at the wheels are fairly close to the numbers BMW claims at the crank. What most people conclude is that the actual power output at the crank is much higher than what BMW claims, rather than concluding that the BMW drivetrain is extrememly efficient.