The Field Work for the December 31, 2012 Audit of Medina

The field work for the December 31, 2012 audit of Medina Corporation ended on March 17, 2013. The financial statements and auditor's report were issued and mailed to stockholders on March 29, 2013. In each of the material situations below, select the appropriate action.
-On February 17, 2013, you discovered that, on November 30, 2012, a flood destroyed the entire uninsured inventory in one of Medina's warehouses.

A) Adjust the December 31, 2012 financial statements.
B) Disclose the information in a footnote in the December 31, 2012 financial statements.
C) Request the client revise and reissue the December 31, 2012 financial statements. The revision should involve an adjustment to the December 31, 2012 financial statements.
D) Request the client revise and reissue the December 31, 2012 financial statements. The revision should involve the addition of a footnote, but no adjustment, to the December 31, 2012 financial statements.
E) No action is required.