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Quick Answer
The answer is to use a VPC endpoint for DynamoDB and SNS, and ensure the Lambda function is configured to use the VPC. This combination meets both encryption and cross-account access requirements because VPC endpoints keep all traffic within the AWS network, using HTTPS to enforce encryption in transit, while the Lambda function’s attachment to a private subnet via an ENI prevents any public internet exposure. On the SAA-C03 exam, this scenario tests your understanding of how Lambda VPC endpoints enforce account isolation and data security simultaneously—a common trap is assuming Lambda’s default public routing is acceptable, but compliance mandates private connectivity. Remember the mnemonic “VPC + Endpoint = Private & Encrypted” to recall that Lambda must be inside the VPC for endpoints to work, and that cross-account access is blocked by default when traffic never leaves the AWS backbone.
SAA-C03 Design Secure Architectures Practice Question
This SAA-C03 practice question tests your understanding of design secure architectures. 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. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. 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 is deploying a serverless application using AWS Lambda functions that process credit card transactions. The application stores data in Amazon DynamoDB and sends notifications through Amazon SNS. Compliance requirements mandate that all data in transit and at rest is encrypted, and that no AWS Lambda function can access resources in other AWS accounts. Which three steps should be taken to meet these requirements? (Choose three.)
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
✓
Attach an IAM policy to the Lambda execution role that denies access to resources outside the account using a condition on aws:SourceAccount.
The correct options enforce account isolation and encryption in transit. Option 2 uses an IAM policy with a condition key like `aws:SourceAccount` to explicitly deny any action where the resource ARN belongs to a different AWS account, preventing cross-account access. Option 3 enables encryption in transit by routing Lambda traffic through an Elastic Network Interface (ENI) in a private subnet, using VPC endpoints for DynamoDB (HTTPS) and SNS (HTTPS) so data never traverses the public internet. Option 4 ensures the Lambda function is attached to the VPC, which is necessary for the VPC endpoints to be used; without this, traffic would still go over the public internet, breaking encryption-in-transit compliance.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Common exam traps
Common exam trap: answer the scenario, not the keyword
AWS often tests the misconception that VPC endpoints alone guarantee encryption in transit, but candidates forget that the Lambda function must actually be configured to use the VPC (via `VpcConfig`) for the endpoints to be effective; otherwise, traffic still goes over the public internet.
Detailed technical explanation
How to think about this question
When a Lambda function is configured to use a VPC, it gets an ENI in a private subnet, and all outbound traffic flows through that ENI. VPC endpoints for DynamoDB and SNS use AWS PrivateLink, which keeps traffic within the AWS network and encrypts it via TLS 1.2+ without needing an internet gateway or NAT device. The IAM policy condition `aws:SourceAccount` is evaluated against the `aws:SourceAccount` context key, which is present only for services that support it; for Lambda, you can also use `aws:SourceArn` to restrict to specific resources, but `aws:SourceAccount` is simpler for account-level isolation.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
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
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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
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FAQ
Questions learners often ask
What does this SAA-C03 question test?
Design Secure Architectures — This question tests Design Secure Architectures — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Attach an IAM policy to the Lambda execution role that denies access to resources outside the account using a condition on aws:SourceAccount. — The correct options enforce account isolation and encryption in transit. Option 2 uses an IAM policy with a condition key like `aws:SourceAccount` to explicitly deny any action where the resource ARN belongs to a different AWS account, preventing cross-account access. Option 3 enables encryption in transit by routing Lambda traffic through an Elastic Network Interface (ENI) in a private subnet, using VPC endpoints for DynamoDB (HTTPS) and SNS (HTTPS) so data never traverses the public internet. Option 4 ensures the Lambda function is attached to the VPC, which is necessary for the VPC endpoints to be used; without this, traffic would still go over the public internet, breaking encryption-in-transit compliance.
What should I do if I get this SAA-C03 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
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