What should an auditor do regarding subsequent events?

An auditor's responsibility concerning subsequent events is to address those events that come to their attention during the audit process. Subsequent events are significant occurrences that happen between the balance sheet date and the date when the financial statements are issued. Some events may impact the financial statements or disclosures, and the auditor needs to be aware of these to ensure that they are appropriately reflected in the financial reporting.

By addressing events that come to their attention, auditors can ascertain whether there are any adjustments needed to the financial statements or if additional disclosures are required. This approach ensures that the financial statements remain accurate and provide a true view of the entity's financial position as of the reporting date.

The notion of only reporting routine upgrades is not aligned with the auditor's responsibilities, as it dismisses the broader significance of the events that may affect the financial statements. Additionally, actively looking for all subsequent events may lead to an inefficient use of the auditor's time and resources, as not all subsequent events will be relevant. Therefore, focusing on significant events that come to the auditor's attention is the correct approach, ensuring that the auditors carry out their duties effectively and meet professional standards.