- A
AWS Identity and Access Management (IAM)
Why wrong: IAM is used for managing users and permissions within a single AWS account. It does not natively federate with an external identity provider to provide cross-account SSO, and it requires creating IAM users, which does not meet the requirement to use existing AD credentials without creating separate users.
- B
AWS Directory Service for Microsoft Active Directory
Why wrong: AWS Directory Service for Microsoft AD sets up a managed Active Directory in the AWS cloud. While it can be used as an identity source, it does not by itself provide the cross-account SSO or permission management across multiple AWS accounts that the company needs. An additional service like IAM Identity Center is required for that.
- C
AWS IAM Identity Center (AWS Single Sign-On)
IAM Identity Center is the correct service for this use case. It connects to an existing identity provider (such as on-premises Active Directory), enables single sign-on to the AWS Management Console and CLI, and centrally manages permissions across all accounts in AWS Organizations by assigning permission sets to groups.
- D
AWS Resource Access Manager (AWS RAM)
Why wrong: AWS RAM allows you to share AWS resources such as subnets or Route 53 rules across accounts. It does not handle user identity, authentication, or permissions management, so it cannot provide SSO or centrally manage user access to accounts.
CLF-C02 Security and Compliance Practice Question
This CLF-C02 practice question tests your understanding of security and compliance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. A key principle to apply: iAM Identity Center integrates with external identity providers like on-premises Active Directory.. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company manages multiple AWS accounts using AWS Organizations. The company has an on-premises Microsoft Active Directory (AD) that contains employee credentials and group memberships. The company wants to grant employees access to the AWS Management Console and command-line interface (CLI) using their existing AD credentials, without creating IAM users for each employee. Additionally, the company wants to centrally manage permissions across all accounts by assigning policies to AD groups. Which AWS service should the company use to meet these requirements?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
AWS IAM Identity Center (AWS Single Sign-On)
AWS IAM Identity Center (formerly AWS Single Sign-On) is the correct service because it allows centralized management of user access to multiple AWS accounts and applications using existing corporate credentials from Microsoft Active Directory. It supports federation with AD via SAML 2.0 or SCIM, enabling employees to sign in to the AWS Management Console and CLI without creating IAM users. Permissions can be assigned to AD groups through permission sets, which map to IAM roles, ensuring consistent policy enforcement across all accounts in AWS Organizations.
Key principle: IAM Identity Center integrates with external identity providers like on-premises Active Directory.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
AWS Identity and Access Management (IAM)
Why it's wrong here
IAM is used for managing users and permissions within a single AWS account. It does not natively federate with an external identity provider to provide cross-account SSO, and it requires creating IAM users, which does not meet the requirement to use existing AD credentials without creating separate users.
- ✗
AWS Directory Service for Microsoft Active Directory
Why it's wrong here
AWS Directory Service for Microsoft AD sets up a managed Active Directory in the AWS cloud. While it can be used as an identity source, it does not by itself provide the cross-account SSO or permission management across multiple AWS accounts that the company needs. An additional service like IAM Identity Center is required for that.
- ✓
AWS IAM Identity Center (AWS Single Sign-On)
Why this is correct
IAM Identity Center is the correct service for this use case. It connects to an existing identity provider (such as on-premises Active Directory), enables single sign-on to the AWS Management Console and CLI, and centrally manages permissions across all accounts in AWS Organizations by assigning permission sets to groups.
Related concept
IAM Identity Center integrates with external identity providers like on-premises Active Directory.
- ✗
AWS Resource Access Manager (AWS RAM)
Why it's wrong here
AWS RAM allows you to share AWS resources such as subnets or Route 53 rules across accounts. It does not handle user identity, authentication, or permissions management, so it cannot provide SSO or centrally manage user access to accounts.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse AWS Directory Service for Microsoft Active Directory with IAM Identity Center, thinking that a managed AD alone can provide cross-account access and SSO, but Directory Service only provides the directory backend and lacks the centralized permission assignment and federation capabilities that IAM Identity Center offers for multi-account environments.
Detailed technical explanation
How to think about this question
Under the hood, IAM Identity Center creates a trusted identity provider relationship with the on-premises AD using SAML 2.0 assertions, and it uses SCIM to automatically sync users and groups. When an employee signs in, IAM Identity Center issues temporary AWS credentials via AWS STS, which are scoped to the permission set assigned to their AD group, allowing access to the CLI and console without storing long-term credentials. A subtle behavior is that permission sets are essentially IAM roles with a trust policy that allows the IAM Identity Center service to assume them, and these roles are created in each member account automatically.
KKey Concepts to Remember
- IAM Identity Center integrates with external identity providers like on-premises Active Directory.
- It enables single sign-on (SSO) to the AWS Management Console and CLI across multiple accounts.
- Permissions are managed centrally by assigning permission sets to AD groups.
- It eliminates the need to create individual IAM users for employees in each AWS account.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
IAM Identity Center integrates with external identity providers like on-premises Active Directory.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Review iAM Identity Center integrates with external identity providers like on-premises Active Directory., then practise related CLF-C02 questions on the same topic to reinforce the concept.
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Security and Compliance — study guide chapter
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FAQ
Questions learners often ask
What does this CLF-C02 question test?
Security and Compliance — This question tests Security and Compliance — IAM Identity Center integrates with external identity providers like on-premises Active Directory..
What is the correct answer to this question?
The correct answer is: AWS IAM Identity Center (AWS Single Sign-On) — AWS IAM Identity Center (formerly AWS Single Sign-On) is the correct service because it allows centralized management of user access to multiple AWS accounts and applications using existing corporate credentials from Microsoft Active Directory. It supports federation with AD via SAML 2.0 or SCIM, enabling employees to sign in to the AWS Management Console and CLI without creating IAM users. Permissions can be assigned to AD groups through permission sets, which map to IAM roles, ensuring consistent policy enforcement across all accounts in AWS Organizations.
What should I do if I get this CLF-C02 question wrong?
Review iAM Identity Center integrates with external identity providers like on-premises Active Directory., then practise related CLF-C02 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
IAM Identity Center integrates with external identity providers like on-premises Active Directory.
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Last reviewed: Jun 11, 2026
This CLF-C02 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLF-C02 exam.
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