I would also place a "set -x" in your script to see where its failing. The
script execution path will than be placed in /tmp/script.out and that may
give you a clue to what's going on.
This states that at 03:42 every day, the following command is run:
root /tmp/test1.sh
so unless you have a command called root then this will fail to even start. If you are expecting this to nominate the user to run the command, then that is set by the fact that it is in root's crontab file.