Assessments are crucial for preparing students for work and life, but pose academic challenges between evaluation and learning. This creates tension between formative and summative assessments with overlapping purposes. This article examines the use of Interactive Oral Assessments (IOAs) in authentic, industry-aligned scenarios, showing how they support co-existence of summative and formative functions through a constructivist lens. Survey data from 290 students across 25 subjects in a three-year project at an Australian institution show high levels of student engagement resulting from IOAs. Preparation for summative IOAs boosted students' confidence and work-readiness while providing insights into their learning processes, reflecting the presence of three Ps: Plan, Prepare, and Perform. Through constructivist principles typical of formative assessments, IOAs enabled personalized feedback and extended learning, meaning that IOAs offer an evidence-based approach to bridging the gap between formative and summative assessments, preparing students for professional life while enhancing employability and improving institutional retention.