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

The field work for the December 31, 2012 audit of Alfa 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 January 16, 2013, a lawsuit was filed against Alfa for a patent infringement action that allegedly took place in early 2005. In the opinion of Alfa's attorneys, there is a reasonable (but not probable) danger of a significant loss to Alfa.

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