Quick Answer
The answer is to configure Diagnostic settings on the Key Vault. This is correct because Diagnostic settings are the Azure mechanism that controls the export of platform logs and metrics to destinations like a Log Analytics workspace; without them, the vault’s internal audit events and performance metrics remain inaccessible for querying. On the AZ-104 exam, this tests your understanding of monitoring and logging configuration, often appearing as a scenario where a security admin needs to enable security analysis via KQL queries. A common trap is confusing Diagnostic settings with resource locks or Azure Policy, which do not route logs. Remember the mnemonic: “Diag sends the logs, locks just block the docs.”
This AZ-104 practice question tests your understanding of monitor and maintain azure resources. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 security admin wants Key Vault audit logs and metrics sent to a Log Analytics workspace for later search. Which Azure setting should be configured on the vault?
Diagnostic settings
Diagnostic settings send resource logs and metrics from the vault to Log Analytics.
Azure Policy assignment
Why wrong: Azure Policy enforces compliance, but it does not directly export vault logs.
Network security group
Why wrong: An NSG controls network traffic, not logging or metric collection from Key Vault.
Action group
Why wrong: An action group sends alert notifications, but it does not collect audit data.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Diagnostic settings
Diagnostic settings in Azure Key Vault allow you to stream platform logs and metrics to various destinations, including a Log Analytics workspace. By configuring diagnostic settings on the vault, you can send audit logs (e.g., AuditEvent) and metrics (e.g., ServiceApiLatency) to Log Analytics for querying with KQL, enabling security analysis and monitoring.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Diagnostic settings
Why this is correct
Diagnostic settings send resource logs and metrics from the vault to Log Analytics.
Related concept
Read the scenario before looking for a memorised answer.
Azure Policy assignment
Why it's wrong here
Azure Policy enforces compliance, but it does not directly export vault logs.
Network security group
Why it's wrong here
An NSG controls network traffic, not logging or metric collection from Key Vault.
Action group
Why it's wrong here
An action group sends alert notifications, but it does not collect audit data.
Common exam traps
The trap here is that candidates confuse diagnostic settings (which export logs/metrics) with action groups (which send notifications) or Azure Policy (which enforces rules), leading them to select a wrong option that does not actually stream data to Log Analytics.
Detailed technical explanation
Under the hood, diagnostic settings use Azure Monitor's data collection pipeline to export resource logs and metrics to destinations like Log Analytics, Event Hubs, or Storage. For Key Vault, the 'AuditEvent' log category captures all authenticated requests (e.g., secret retrieval, key operations), while metrics like 'ServiceApiLatency' are collected at 1-minute granularity. A real-world scenario: enabling diagnostic settings on Key Vault is critical for detecting unauthorized access attempts or monitoring API performance trends over time.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
What to study next
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FAQ
Monitor and Maintain Azure Resources — This question tests Monitor and Maintain Azure Resources — Read the scenario before looking for a memorised answer..
The correct answer is: Diagnostic settings — Diagnostic settings in Azure Key Vault allow you to stream platform logs and metrics to various destinations, including a Log Analytics workspace. By configuring diagnostic settings on the vault, you can send audit logs (e.g., AuditEvent) and metrics (e.g., ServiceApiLatency) to Log Analytics for querying with KQL, enabling security analysis and monitoring.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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