Was the engine under water, or is there water in the crankcase? I am guessing salt water? If it's in the engine, I would expect that you should pull it apart and clean and inspect everything. One of the old tricks when a race boat sunk was to draing and fill the crankcase with diesel until it could be attended to, to protect the parts from water damage. Others may disagree here, and I would like to have a better description of the facts.