easyMultiple Choice
CAS-004 Migrating its applications to a SaaS model Practice Question
A company is migrating its applications to a SaaS model. Which of the following should be included in the contract to ensure secure data handling?
⚠ Common exam trap
Many exam-takers confuse legal or operational clauses (audit, indemnification, SLA) with technical security controls, mistakenly believing that contractual terms alone can enforce secure data handling without specifying cryptographic protections.
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
✓
Data encryption at rest and in transit
Data encryption at rest and in transit is a fundamental security requirement for protecting sensitive data in a SaaS environment. Encryption at rest (e.g., AES-256) ensures data stored on the provider's servers is unreadable if physically compromised, while encryption in transit (e.g., TLS 1.2/1.3) protects data as it moves between the client and the SaaS platform. This directly addresses secure data handling, which is the core concern of the question.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Right to audit
Why it's wrong here
A right to audit lets the customer inspect the provider's controls, but it does not itself enforce secure data handling; encryption, access controls and data-return or deletion terms do. Audit rights suit assurance and compliance verification where the provider's security posture must be independently validated.
- ✗
Indemnification clause
Why it's wrong here
Indemnification allocates financial liability after a breach or legal claim; it does not secure data handling. Encryption, access control and data-deletion clauses do. Indemnification belongs in contracts where the parties must shift risk for third-party claims, not where technical safeguards are required.
- ✗
SLA for uptime
Why it's wrong here
An uptime SLA guarantees availability percentages and service credits, addressing resilience rather than confidentiality or integrity of data. Secure data handling needs encryption, access controls and deletion terms. Uptime SLAs fit contracts where availability is the primary measurable obligation.
- ✓
Data encryption at rest and in transit
Why this is correct
Mandating encryption at rest and in transit in the SaaS contract ensures the provider applies cryptographic controls to stored data and network traffic, directly satisfying the secure data handling requirement that the migration imposes on the outsourced service.
Quick reference
Symmetric Encryption Algorithm Comparison
| Algorithm | Key Size | Block Size | Status | Notes |
|---|---|---|---|---|
| AES-128 | 128-bit | 128-bit | Current standard | NIST approved; WPA3, TLS |
| AES-256 | 256-bit | 128-bit | Current standard | Preferred for sensitive / govt data |
| 3DES | 112-bit effective | 64-bit | Deprecated (2023) | Replaced by AES |
| DES | 56-bit | 64-bit | Broken | Cracked in < 24 h; never deploy |
| ChaCha20 | 256-bit | Stream cipher | Current | TLS 1.3, WireGuard |
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAS-005 practice question is part of Courseiva's free CompTIA 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 CAS-005 exam.