A company uses an organization in AWS Organizations to manage multiple AWS accounts in a...

Comprehensive & Detailed Explanation (150–250 words):

To allow developers to create IAM users without granting excessive permissions, the correct solution is to use permissions boundaries, which AWS specifically recommends for restricting delegated administrators such as developers. A permissions boundary defines the maximum permissions that an IAM user or role can delegate.

Step C ensures that each AWS account contains a PermissionBoundaries policy defining the maximum allowed permissions that any developer-created user may receive. This prevents privilege escalation, even if the developer attaches a more powerful policy. This aligns with AWS guidance for restricting privilege escalation within multi-account environments.

Step E ensures that developers can create IAM users but only if they attach the PermissionBoundaries policy as the permissions boundary. By attaching the DeveloperBoundary policy to the CreateAndManageUsers role, developers gain the ability to create users, but they are cryptographically prevented from assigning permissions outside the boundary policy.

Meanwhile, the DevOps team (who are not restricted by the boundary) can still create IAM users with full permissions.

This combination satisfies all constraints:

DevOps team: unrestricted IAM creation

Developers: restricted IAM creation enforced by boundaries

Other users: still blocked from IAM creation by existing SCP