Free IIA-CIA-PART3-3P Exam Braindumps
Certified Internal Auditor - Part 3, Business Analysis and Information Technology Questions 496–500 (page: 101)

Updated On: 10-Feb-2026

The necessary elements of a contract include:

  1. Some form of writing, equal consideration, and legal capacity.
  2. Formal execution, definite terms, and a valid offer and acceptance.
  3. Offer and acceptance, consideration, legal capacity, and mutual assent.
  4. Bilateral promises, legal capacity, and legality of purpose.

Answer(s): C

Explanation:

Contracts require each of the following:
1. Offer and acceptance
2. Mutual assent meeting of the minds)
3. Consideration bargained-for exchange)
4. Legality legal purpose)
5. Capacity of parties legal ability



Consideration consists of:

  1. Something with monetary value.
  2. Each party's receiving an actual benefit only.
  3. Two promises.
  4. Legal sufficiency and bargained-for exchange.

Answer(s): D

Explanation:

Consideration must be legally sufficient and intended as a bargained-for exchange. A promise has provided legally sufficient consideration if s)he incurs a legal detriment or if the promise receives a legal benefit An essential aspect of consideration is that it be bargained for, and given in exchange for, the consideration provided by the other party.
That is, consideration is mutual.



Lamar became homeless at a very young age and was taken in by Aunt and Uncle. Many years later, Lamar became a detective in the city police department.
When Aunt disappeared and was not heard from for a month, the case was assigned to Lamar. Uncle also came to Lamar and asked him to promise to find Aunt in return for the years of support. Lamar agreed to Uncle's request.
Which of the following is true?

  1. Lamar's contractual duty to find Aunt is based on past consideration.
  2. Lamar has no contractual duty to find Aunt.
  3. If Uncle had also promised Lamar US $1,000 for finding Aunt, he would be liable when Lamar found her.
  4. Lamar will be liable for breach of contract if he does not find Aunt.

Answer(s): B

Explanation:

Lamar has a pre-existing legal duty to find Aunt Consideration does not exist if an existing duty was imposed by law or a person is already under a contractual agreement to render a specified performance. Lamar will suffer no new legal detriment by finding Aunt; thus, no contractual obligation exists.



Which of the following creates a valid contract between the parties?

  1. A reward was posted for the capture of Tom Jones_ Maypole Burden, the county sheriff, captured Jones and claimed the reward.
  2. Slim Polestone promised to give Mabel Abbot a wedding present.
  3. Anxious Father promised to pay Albert Niceguy US $4,000 to take his daughter to the annual Mulestone Dance. Albert agreed.
  4. Festival Fanny was drowning in her hot tub. Her boyfriend pulled her out. After the rescue, Festival's husband promised to pay her boyfriend US $4 for rescuing his wife.

Answer(s): C

Explanation:

A valid contract exists because Anxious Father offered to pay Albert US $4,000 for taking his daughter to the dance. This is a unilateral contract supported by the consideration of US $4,000. Albert will be entitled to the US $4,000 after he takes the daughter to the dance.



Control objectives regarding effectiveness and efficiency, reliability, and compliance are the basis of which control framework?

  1. GTAG
  2. eSAC
  3. COBIT
  4. COSO

Answer(s): D

Explanation:

Probably the most well-known control framework in the U.S. is Infernal Control Integrated Framework, published in 1992 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The document is commonly referred to as the COSO Framework." The COSO Framework defines internal control as A process, effected by an organization's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
· Effectiveness and efficiency of operations
· Reliability of financial reporting
· Compliance with applicable laws and regulations



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