Jackson, an early career staff member in Harrison & Weeks, LLP, began but did not finish the audit of inventory in the Bosco Corporation, a manufacturer and marketer of expensive watches. During the audit, Jackson resigned from Harrison & Weeks and the firm assigned Davidson, an entry-level staff member, to complete Jackson's work.

Due to the staff change and to busy season time pressure, the firm did not audit inventory adequately. Had appropriate procedures been used, Jackson and Davidson would likely have discovered that watches worth more than \($20,000\) were missing, all stolen by a sales clerk. The clerk stole \($75,000\) in watches before the thefts were discovered six months after Harrison & Weeks completed the audit.

Required: 

Discuss the legal problems that Harrison & Weeks will likely face.