January 7, 2014: it is discovered that Hollis Mfg. Corporation has materially underestimated the total cost to complete a long term construction project on which revenue is recognized by the percentage of completion method. The amount of income (loss) to be recognized on the project in the current year should be recomputed using cost estimates. Which of the following is correct? A. Should be disclosed in the audit report B. Adding a note to the financial statement should be sufficient C. Adjusting entry should be made to 2013 financial statement D. None of the answers are correct