Are there any circumstances under which an auditor may prepare financial statements to comply with FRS102 and CA2006 from the nominal ledger and trial balance provided by the client, especially as each and every journal entry in the financial statements has to be authorised by management of the company, and the work of the auditor is mechanical? It is a medium size client.
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I'm not sure what the question is here exactly. Is it whether the auditor can trust those figures without auditing further and sign off an audit report? Or whether they can be the ones to turn the ledgers into accounts and also do the audit while maintaining independence?
Ethical rules dictate that there could be a threat to independence if the auditor prepares financial statements and then audits them.
Assuming that you're talking about a company that's not part of a listed group, there's nothing to stop an audit firm preparing a set of statutory financial statements from a client's trial balance.
Our company accounts are audited.
We give our final TB to the auditors.
I don't have the software to produce stat accounts in house.
I don't see a problem from an independence perspective.
I carry lots of audits each year and a majority of them we prepare the financial statements from the clients TB.
There is a self review threat for independence but we use different staff on each assignment to cover that.
The only time you cant is when they are listed and the big 4 don't.