EXACTLY!!
This is why an extension can affect the torque. The extension is basically a spring. Stress vs. strain - if you have a couple hundred hours of time to kill, then learn what is occurring in the stress vs. strain relation. The relation explains in detail why a TTY bolt cannot be re-used it you want an accurate clamping force.
On the other hand, if you have an extension that requires more torque to twist than you are applying, then it will provide an accurate torque.