- A
Use server-side encryption with S3 managed keys (SSE-S3)
Why wrong: SSE-S3 does not provide audit trail of key usage.
- B
Use client-side encryption with an AWS KMS managed key
Client-side encryption with KMS also provides audit trail and key rotation.
- C
Use server-side encryption with customer-provided keys (SSE-C)
Why wrong: SSE-C does not provide automatic key rotation.
- D
Use client-side encryption with a master key stored in AWS Secrets Manager
Why wrong: Does not provide automatic rotation or audit trail of key usage.
- E
Use server-side encryption with AWS KMS managed keys (SSE-KMS)
SSE-KMS integrates with CloudTrail for audit and supports automatic key rotation.
Question 889 of 1,746
SAP-C02 Design for New Solutions Practice Question
This SAP-C02 practice question tests your understanding of design for new solutions. 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 designing a new application that will store sensitive customer data in Amazon S3. The data must be encrypted at rest. The company wants to use an encryption solution that provides an audit trail of when keys are used and by whom. The company also wants to rotate the encryption keys automatically every year. Which two options meet these requirements? (Choose TWO.)
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
✓
Use client-side encryption with an AWS KMS managed key
Option B is correct because client-side encryption with an AWS KMS managed key allows the application to encrypt data before uploading to S3, providing full control over key usage and an audit trail via AWS CloudTrail for every KMS API call (e.g., Encrypt, Decrypt). Option E is correct because SSE-KMS uses AWS KMS to manage the encryption keys, automatically rotates them annually (when using a KMS key with automatic rotation enabled), and logs all key usage in CloudTrail, meeting the audit trail requirement.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use server-side encryption with S3 managed keys (SSE-S3)
Why it's wrong here
SSE-S3 does not provide audit trail of key usage.
- ✓
Use client-side encryption with an AWS KMS managed key
Why this is correct
Client-side encryption with KMS also provides audit trail and key rotation.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use server-side encryption with customer-provided keys (SSE-C)
Why it's wrong here
SSE-C does not provide automatic key rotation.
- ✗
Use client-side encryption with a master key stored in AWS Secrets Manager
Why it's wrong here
Does not provide automatic rotation or audit trail of key usage.
- ✓
Use server-side encryption with AWS KMS managed keys (SSE-KMS)
Why this is correct
SSE-KMS integrates with CloudTrail for audit and supports automatic key rotation.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume SSE-S3 (Option A) provides an audit trail because it encrypts data at rest, but they overlook that SSE-S3 does not log key usage in CloudTrail, making it unsuitable for the audit requirement, while SSE-KMS (Option E) is the only server-side option that meets both audit and rotation needs.
Detailed technical explanation
How to think about this question
SSE-KMS uses envelope encryption where a KMS key (CMK) generates a data key for each object; the data key is encrypted by the CMK and stored with the object, while the CMK itself is never stored in S3. Client-side encryption with KMS requires the application to call the KMS GenerateDataKey API to obtain a plaintext data key for encryption, and then call Decrypt for decryption, with all API calls logged in CloudTrail. Automatic key rotation for KMS keys is enabled by default for new keys (rotates annually) and can be enabled for existing keys, but note that it only rotates the backing key, not the key material used for envelope encryption.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Quick reference
AWS S3 Storage Class Comparison
| Storage Class | Min Duration | Retrieval | Use Case |
|---|---|---|---|
| S3 Standard | None | Immediate | Frequently accessed data |
| S3 Standard-IA | 30 days | Immediate | Infrequent access, rapid retrieval |
| S3 One Zone-IA | 30 days | Immediate | Non-critical infrequent data |
| S3 Intelligent-Tiering | None | Immediate–hours | Unknown or changing access patterns |
| S3 Glacier Instant | 90 days | Milliseconds | Archive with instant retrieval |
| S3 Glacier Flexible | 90 days | Minutes–hours | Archive, flexible retrieval |
| S3 Glacier Deep Archive | 180 days | Hours | Long-term compliance archive |
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this SAP-C02 question test?
Design for New Solutions — This question tests Design for New Solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use client-side encryption with an AWS KMS managed key — Option B is correct because client-side encryption with an AWS KMS managed key allows the application to encrypt data before uploading to S3, providing full control over key usage and an audit trail via AWS CloudTrail for every KMS API call (e.g., Encrypt, Decrypt). Option E is correct because SSE-KMS uses AWS KMS to manage the encryption keys, automatically rotates them annually (when using a KMS key with automatic rotation enabled), and logs all key usage in CloudTrail, meeting the audit trail requirement.
What should I do if I get this SAP-C02 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: Jul 4, 2026
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