Extrinsic rewards are external incentives that motivate an employee to perform a task or stay in a job. These rewards include salary, bonuses, benefits, promotions, and other tangible incentives. In this case, the sales manager explicitly states that she remains in the organization because of the high bonuses, making this an example of extrinsic motivation.
(A) Incorrect - Intrinsic reward.
Intrinsic rewards are derived from internal satisfaction, such as personal growth, job fulfillment, or passion for work.
Since the manager stays primarily for monetary bonuses rather than job satisfaction, this is not intrinsic motivation.
(B) Incorrect - Job enrichment.
Job enrichment involves enhancing job roles by adding responsibilities, autonomy, or variety to improve motivation.
The scenario does not mention job enhancement as a reason for staying.
(C) Correct - Extrinsic reward.
High bonuses are a classic example of extrinsic motivation.
The manager is staying for financial incentives rather than job satisfaction.
(D) Incorrect - The hierarchy of needs.
Maslow's Hierarchy of Needs explains different levels of human motivation, but the question asks for a specific type of motivation rather than a broad theoretical framework.
IIA's Guide on Human Resources Risk Management
Highlights the impact of extrinsic vs. intrinsic motivation on employee retention.
COSO's ERM Framework - Employee Retention and Performance Management
Discusses the role of financial incentives in retaining employees.
IIA's Global Internal Audit Standards - Organizational Behavior and Employee Motivation Explains intrinsic vs. extrinsic rewards in workforce management.
Analysis of Answer Choices:IIA References and Internal Auditing Standards:

Governmental impediments to global competition are generally imposed for the announced purpose of protecting local entities and jobs and developing new industries.
They also may have the effect of raising revenue in the short run. In the long run, tax and revenues will decline because of reduced trade. Examples of governmental impediments are tariffs; duties; quotas; domestic content rules; preferences for local entities regarding procurement, taxes. R&D, labor regulations, and other operating rules; and laws e.g., anti bribery or tax) enacted by a national government that impede national entities from competing globally. These impediments are most likely when industries are viewed as crucial.

Explanation/Reference: https://na.theiia.org/about-us/Public%20Documents/Esther%20R%20%20Sawyer%20Research%
20Manuscript%207-26-11-Rachel%20Bond.pdf

Carrying costs include storage costs, handling costs, insurance costs, interest on capital invested, and obsolescence. Candman Company is a wholesale distributor of candy. The company leases space in a public warehouse and is charged according to the square feet occupied. Candman has decided to employ the economic order quantity 0Q) method to determine the optimum number of cases of candy to order. The company placed 2,400 orders last year. Data for the high-activity month, the low-activity month, and the year for the purchasing and warehouse operations appear in the next column. The annual charges for the warehouse totaled US $12,750 last year. In addition, the annual insurance and property taxes on the candy stored in the warehouse amounted to US $1,500 and US $2,250, respectively.
The average monthly inventory last year was US $75,000.

Understanding Management by Objectives (MBO):
MBO is a performance management approach where employees and managers set specific, measurable goals together.
The main purpose of MBO is to align individual objectives with organizational goals, enhancing motivation and engagement.
Why Option C (Helps Keep Employees Motivated) Is Correct?
Employee motivation improves when individuals understand how their efforts contribute to the organization's success.
Setting clear objectives and allowing employees to participate in goal-setting increases job satisfaction and engagement.
IIA Standard 2120 - Risk Management supports frameworks like MBO that contribute to organizational performance and employee effectiveness.
Why Other Options Are Incorrect?
Option A (Most helpful in organizations with rapid changes):
MBO is less effective in rapidly changing environments because it relies on long-term goal setting.
Option B (Best in mechanistic organizations with rigid tasks):
MBO works better in adaptive, flexible organizations, not those with rigid structures.
Option D (Distinguishes strategic from operational goals):
MBO focuses on individual and team goals, not distinguishing strategic vs. operational goals.
MBO enhances employee motivation by involving them in goal-setting and performance tracking.
IIA Standard 2120 supports employee engagement strategies for better performance management.
Final Justification:IIA References:
IPPF Standard 2120 - Risk Management (Employee Engagement & Performance Management) COSO ERM - Performance Measurement & Goal Alignment