Junior plc$,$ a listed company, is a leading UK retailer of up$-$market clothing, shoes and accessories sold primarily under the $$Junior$$ brand name. The brand represents classic styles, updated to reflect current fashion trends. Company stores offer a full range of business and casual outfits, shoes and accessories coordinated as part of a total styling strategy. The company places a significant emphasis on customer service; sales associates are trained to assist customers in item selection and wardrobe coordination, helping them achieve a classic yet chic and current look, while maintaining the customers$$ personal styles.

The company$$s core business is focused on relatively affluent, fashion$-$conscious professional women with limited shopping time. Substantially all of the company$$s merchandise is developed in$-$house by its product design and development teams. Production of merchandise is sourced to independent manufacturers in $14$ countries.

Approximately $50\%,18\%$ and $6\%$ of the company$$s merchandise is manufactured in China, Thailand and Indonesia respectively.

The company operates $80$ stores countrywide $($under operating leases$),$ having closed down $35$ stores over the last two years. Merchandise is distributed to the company$$s retail stores through three distribution centres spread across the UK$.$ The company also makes sales online and is highly rated for having one of the UK$$s top five impressive fashion search databases online.

Junior Plc$.$ remained profitable amid the global financial crisis and as at $31$ June $2022,$ the company had gross revenue of $1\mathrm{.}4$ billion and net profit of $119$ million. The company recognises revenue as and when merchandise is sold to clients and a provision for estimated returns is established when sales are recorded. In terms of expenses, the company spends a lot on advertising and marketing; $($Advertising costs were approximately $55$ million for the year to $31$ June $2022)$; salaries and wages $(247$ million as at $31$ June $2022),$ among others. The company$$s non$-$current assets as at $31$ June $2022$ are valued at $1\mathrm{.}3$ billion.

However, the company intends to focus on reducing its cost structure over the next financial year, in light of the volatile nature of the current economic environment.

Your firm, Global Alias, is in the initial planning phase of the audit for the year ended $31$ June $2022.$ As the audit senior, you have been assigned responsibility for determining materiality. The audit partner has performed a preliminary analysis of the company and its performance and believes the likelihood of fraud is low.

Required: $($a$)$ Detail the matters to which you would pay particular attention in obtaining the required knowledge of the business and in developing your audit plan for the year ended $31$ June $2022.(10$ marks$)$

$($b$)$ Identify and describe FOUR matters that give rise to audit risks associated with the audit of Junior Plc$.(8$ marks$)$

$($c$)$ Explain the concept of $$materiality$$ and its importance during the audit planning process