Quick Answer
The correct answer is to allow cloudformation:* and deny iam:*. This policy works because it grants full access to CloudFormation actions while explicitly blocking any IAM-related actions, ensuring the developer can deploy stacks but cannot create or modify IAM resources. On the AWS Certified SysOps Administrator Associate SOA-C02 exam, this scenario tests your understanding of how explicit deny overrides allow, a critical concept when restricting IAM actions while allowing CloudFormation deployments. A common trap is assuming that allowing CloudFormation alone is sufficient, but without a deny for iam:*, the developer could still create IAM roles or policies if the CloudFormation template includes them. Remember the memory tip: "Allow the stack, deny the keys"—meaning let CloudFormation run, but lock down IAM permissions.
This SOA-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. 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 wants to allow a developer to deploy applications using AWS CloudFormation but restrict the developer from creating or modifying IAM resources. Which IAM policy should be used?
Allow iam:*
Why wrong: This allows IAM actions, which is not desired.
Deny cloudformation:*
Why wrong: This prevents all CloudFormation actions, which is not desired.
Allow cloudformation:* and deny iam:*
This enables CloudFormation actions while explicitly blocking IAM actions.
Allow cloudformation:* only
Why wrong: Without a deny, the developer might still have IAM permissions from other policies.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Allow cloudformation:* and deny iam:*
Option A is correct because it allows all CloudFormation actions but denies IAM-related actions. Option B is wrong because it does not explicitly deny IAM actions, so the developer could still create IAM resources if the policy allows it. Option C is wrong because it denies all actions on CloudFormation stacks, which is too restrictive. Option D is wrong because it allows all actions on IAM, which is the opposite of what is needed.
Key principle: ACLs process entries top to bottom and stop at the first match. Entry order and interface direction matter as much as the permit or deny statement.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Allow iam:*
Why it's wrong here
This allows IAM actions, which is not desired.
Deny cloudformation:*
Why it's wrong here
This prevents all CloudFormation actions, which is not desired.
Allow cloudformation:* and deny iam:*
Why this is correct
This enables CloudFormation actions while explicitly blocking IAM actions.
Related concept
Standard ACLs match source addresses.
Allow cloudformation:* only
Why it's wrong here
Without a deny, the developer might still have IAM permissions from other policies.
Common exam traps
ACLs are processed top to bottom. The first matching entry wins, and an implicit deny usually exists at the end.
Detailed technical explanation
ACL questions test precision: source, destination, protocol, port and direction. A generally correct ACL can still fail if it is applied on the wrong interface or in the wrong direction.
Key takeaway
ACLs process entries top to bottom and stop at the first match. Entry order and interface direction matter as much as the permit or deny statement.
Real-world example
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
Review ACL processing order, placement rules (standard near destination, extended near source), and inbound vs outbound direction. Study wildcard masks and implicit deny. Then practise related SOA-C02 ACL questions on filtering logic and placement.
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FAQ
Security and Compliance — This question tests Security and Compliance — Standard ACLs match source addresses..
The correct answer is: Allow cloudformation:* and deny iam:* — Option A is correct because it allows all CloudFormation actions but denies IAM-related actions. Option B is wrong because it does not explicitly deny IAM actions, so the developer could still create IAM resources if the policy allows it. Option C is wrong because it denies all actions on CloudFormation stacks, which is too restrictive. Option D is wrong because it allows all actions on IAM, which is the opposite of what is needed.
Review ACL processing order, placement rules (standard near destination, extended near source), and inbound vs outbound direction. Study wildcard masks and implicit deny. Then practise related SOA-C02 ACL questions on filtering logic and placement.
Standard ACLs match source addresses.
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Last reviewed: Jun 20, 2026
This SOA-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 SOA-C02 exam.
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