C is corrent because evidence which will become irretrievable will affect the timing of tests of controls and substantive procedures since the auditor must obtain the evidence when it is available.
A is incorrect because while auditors will accept a certain level of detection risk, its level should not be difficult to determine because of irretrievable audit evidence.
B is incorrect because substantive procedures must be adopted, often with tests of controls; also, "reliance test" is a term not generally used in the auditing standards, although reliance upon internal control seems implied.
D is incorrect because while such an environment may indicate a relatively high level of inherent risk, that level need not be difficult to determine.
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