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1) The PCAOB defines professional skepticism as “an attitude that includes a questioning mind and a critical assessment of audit evidence” (PCAOB, 2012). Will exercised professional skepticism when he first asked Jessica about the missing cash receipt in the bank deposit. He realized that the entry in the receipt book was in black ink and the envelope in blue ink. This showed that they were not completed at the same time. He then discovered that the cash for the November 16, 2005 transaction was composed of bills that were printed in 2006. Will also asked Jess if there was anything else he needed to know about the situation. Conditions present that could have limited Will’s skepticism include that his best friend’s wife, Jess, was the assistant Clerk of Court on his client, the Town of Rosedale. He could have also over-relied on Jess’s word and not performed the further procedures that were necessary. This was also the first engagement where Will was by himself. Even though the partner was pressuring Will to not blow the time budget, he could have done so since he was on his own.

3) List of evidence in favor of Jess’s position:

I. Inspection of records or documents- Will physically inspected the cash receipt.

II. Inquiry- Will made an inquiry about the cash receipt not having a bank deposit with Jess. She said that she and the other employees must have worked late that evening and so they decided to lock it up and include it in the next day’s deposit.

III. Physical Examination- Will recounted the money and all of the $320 was there.

IV. Inquiry- Will remembered the cash receipt/disbursement process that he learned from the employees. Jess or the other assistant clerk would check the receipt book, prepare a voucher to send to the sheriff’s office, prepare the deposit slip for any cash and checks, and make the deposit.

List of evidence against Jess’s position:

I. Inspection of records or documents- Will noticed the entry in the receipt book was in black ink and the envelope in blue ink, when they should have been completed at the same time in the same colored ink.

II. Inspection of tangible assets- Will took a closer look at the bills of the $320 transaction. The transaction took place on November 16, 2005 and the bills that were printed in 2006.

III. Inspection of records or documents (vouching) - The partner, Vince, and Will pulled eight more tickets that were marked as having been paid with cash. Five of the eight were marked as paid in the receipt book but were not included with the day’s deposit or deposits later in the week.

4) A control that could have helped prevent or detect this theft is the segregation of duties. Jess would check the receipt book, prepare a voucher to send to the sheriff’s office, prepare the deposit slip