hardMultiple ChoiceObjective-mapped
CAS-004 Practice Question: A healthtech startup is developing a mobile app…
A healthtech startup is developing a mobile app that collects PHI. They plan to use a third-party cloud provider for data storage. What is the most critical compliance requirement before signing the contract?
⚠ Common exam trap
CompTIA often tests the distinction between contractual compliance (BAA) and technical controls (encryption, SOC reports), leading candidates to prioritize security measures over the mandatory legal agreement required by HIPAA.
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
✓
Execute a Business Associate Agreement (BAA) with the provider
Under HIPAA, a Business Associate Agreement (BAA) is a mandatory contract that ensures the third-party cloud provider (a business associate) will safeguard Protected Health Information (PHI). Without a BAA, the startup would be in direct violation of HIPAA's Privacy and Security Rules, regardless of other security measures. This requirement is non-negotiable before any PHI is shared or stored by the provider.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Verify the provider's data center locations comply with data residency laws
Why it's wrong here
Data residency is important but secondary to the BAA requirement.
- ✓
Execute a Business Associate Agreement (BAA) with the provider
Why this is correct
A BAA is a legal requirement under HIPAA for any vendor handling PHI.
- ✗
Review the provider's SOC 2 Type II report
Why it's wrong here
SOC 2 provides assurance but does not establish contractual obligations for PHI.
- ✗
Ensure all data is encrypted at rest and in transit
Why it's wrong here
Encryption is necessary but not sufficient without a BAA.
Go deeper
Related to this question
About these practice questions
One of 968 original CAS-005 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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.