This CCSP practice question tests your understanding of legal, risk and compliance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 migrating healthcare data to the cloud and must comply with HIPAA. They need to sign a Business Associate Agreement (BAA) with the CSP. What key element must be included in the BAA?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Permitted uses and disclosures of protected health information (PHI)
Option B is correct because a BAA must specify permitted uses and disclosures of PHI. Option A is wrong because encryption requirements are typically in the BAA but not the key element; permitted uses are more fundamental. Option C is wrong because audit log retention is operational. Option D is wrong because breach notification is important but not the key element.
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
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Data encryption requirements for data at rest and in transit
Why it's wrong here
Encryption is a security measure, but the BAA's primary purpose defines data handling.
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Audit log retention period for access to PHI
Why it's wrong here
Audit logs are part of security, not a core BAA element.
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Breach notification timeframe to the covered entity
Why it's wrong here
Breach notification is important but secondary to defining permitted uses.
✓
Permitted uses and disclosures of protected health information (PHI)
Why this is correct
The BAA must state how the CSP can use and disclose PHI.
Related concept
Standard ACLs match source addresses.
Common exam traps
Common exam trap: ACLs stop at the first match
ACLs are processed top to bottom. The first matching entry wins, and an implicit deny usually exists at the end.
Detailed technical explanation
How to think about this question
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.
KKey Concepts to Remember
Standard ACLs match source addresses.
Extended ACLs can match source, destination, protocol and ports.
The first matching ACL entry is used.
There is usually an implicit deny at the end.
TExam Day Tips
→Check inbound versus outbound direction.
→Read the ACL from top to bottom.
→Look for a broader permit or deny above the intended line.
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
How this comes up in practice
A developer is choosing between AES-256 (symmetric) and RSA-2048 (asymmetric) for encrypting a large file that will be sent to a partner. Symmetric encryption is fast but requires key exchange; asymmetric is slower but solves the key distribution problem. A hybrid approach — encrypt the file with AES, encrypt the AES key with RSA — is standard. Questions like this test whether you understand when each approach applies.
What to study next
Got this wrong? Here's your next step.
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 CCSP ACL questions on filtering logic and placement.
Legal, Risk and Compliance — This question tests Legal, Risk and Compliance — Standard ACLs match source addresses..
What is the correct answer to this question?
The correct answer is: Permitted uses and disclosures of protected health information (PHI) — Option B is correct because a BAA must specify permitted uses and disclosures of PHI. Option A is wrong because encryption requirements are typically in the BAA but not the key element; permitted uses are more fundamental. Option C is wrong because audit log retention is operational. Option D is wrong because breach notification is important but not the key element.
What should I do if I get this CCSP question wrong?
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 CCSP ACL questions on filtering logic and placement.
What is the key concept behind this question?
Standard ACLs match source addresses.
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Question Discussion
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