- A
Use the built-in HTTP action with a system-assigned managed identity and request a token from the supplier's authorization server using the managed identity.
Why wrong: Managed identity cannot be used to obtain tokens from external authorization servers.
- B
Use the built-in HTTP action in the Logic App, store the client secret in Azure Key Vault, and retrieve it using the Key Vault connector. Then request a token from the supplier's authorization server.
Why wrong: The HTTP action cannot use managed identity to authenticate to the supplier.
- C
Use the 'Managed API' connector for the supplier, configure it with client ID and secret in the connection parameters, and enable 'Azure AD Integration' on the Logic App.
Why wrong: Managed API connectors do not support arbitrary OAuth flows.
- D
Use the 'HTTP + Swagger' connector, define the OAuth2 security scheme, store the client secret in Key Vault, and configure the Logic App to use a system-assigned managed identity to access Key Vault.
This allows secure credential storage and automatic rotation with Key Vault.
Quick Answer
The correct choice is to use the HTTP + Swagger connector, define the OAuth2 security scheme, store the client secret in Azure Key Vault, and configure the Logic App with a system-assigned managed identity to access Key Vault. This approach securely manages OAuth 2.0 credentials by decoupling the client secret from the Logic App’s code and runtime, storing it in Key Vault where it can be automatically rotated without downtime. The managed identity grants the Logic App a secure, identity-based connection to Key Vault, eliminating the need for hardcoded secrets or service principal credentials. On the AZ-204 exam, this scenario tests your understanding of how to integrate managed identities with Key Vault for credential management in Logic Apps, a common pattern for secure token acquisition. A frequent trap is assuming the built-in HTTP action supports managed identity—it does not, which is why the HTTP + Swagger connector is required. Memory tip: “Swagger + Vault + MI” — the trio for secure OAuth token flows in Logic Apps.
AZ-204 Implement Azure security Practice Question
This AZ-204 practice question tests your understanding of implement azure security. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 retail company uses Azure Logic Apps to integrate with third-party APIs. One Logic App sends purchase orders to a supplier's HTTP endpoint. The supplier requires that the request include an OAuth 2.0 access token obtained from their authorization server. The company wants to manage the client credentials (client ID and client secret) securely and rotate them automatically. The Logic App must also log all requests for auditing. What should you do?
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
Use the 'HTTP + Swagger' connector, define the OAuth2 security scheme, store the client secret in Key Vault, and configure the Logic App to use a system-assigned managed identity to access Key Vault.
Option C is correct. Using HTTP + Swagger connector with managed identity and Key Vault integration allows secure storage and automatic rotation of credentials. Option A is wrong because the built-in HTTP action does not support managed identity. Option B is wrong because the Managed API connector does not support OAuth token acquisition. Option D is wrong because the system-assigned managed identity cannot be used for external OAuth flows.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use the built-in HTTP action with a system-assigned managed identity and request a token from the supplier's authorization server using the managed identity.
Why it's wrong here
Managed identity cannot be used to obtain tokens from external authorization servers.
- ✗
Use the built-in HTTP action in the Logic App, store the client secret in Azure Key Vault, and retrieve it using the Key Vault connector. Then request a token from the supplier's authorization server.
Why it's wrong here
The HTTP action cannot use managed identity to authenticate to the supplier.
- ✗
Use the 'Managed API' connector for the supplier, configure it with client ID and secret in the connection parameters, and enable 'Azure AD Integration' on the Logic App.
Why it's wrong here
Managed API connectors do not support arbitrary OAuth flows.
- ✓
Use the 'HTTP + Swagger' connector, define the OAuth2 security scheme, store the client secret in Key Vault, and configure the Logic App to use a system-assigned managed identity to access Key Vault.
Why this is correct
This allows secure credential storage and automatic rotation with Key Vault.
Related concept
Authentication checks who the user is.
Common exam traps
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
- Authentication checks who the user is.
- Authorization controls what the user is allowed to do after login.
- Privilege levels affect access to EXEC and configuration commands.
- AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
- Do not assume successful login means full administrative access.
- Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
- Separate login problems from permission problems before choosing the answer.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related AZ-204 questions on access control and AAA configuration.
- →
Implement Azure security — study guide chapter
Learn the concepts, then practise the questions
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Implement Azure security practice questions
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Microsoft Azure Developer Associate AZ-204 study guide
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FAQ
Questions learners often ask
What does this AZ-204 question test?
Implement Azure security — This question tests Implement Azure security — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: Use the 'HTTP + Swagger' connector, define the OAuth2 security scheme, store the client secret in Key Vault, and configure the Logic App to use a system-assigned managed identity to access Key Vault. — Option C is correct. Using HTTP + Swagger connector with managed identity and Key Vault integration allows secure storage and automatic rotation of credentials. Option A is wrong because the built-in HTTP action does not support managed identity. Option B is wrong because the Managed API connector does not support OAuth token acquisition. Option D is wrong because the system-assigned managed identity cannot be used for external OAuth flows.
What should I do if I get this AZ-204 question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related AZ-204 questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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Last reviewed: Jun 20, 2026
This AZ-204 practice question is part of Courseiva's free Microsoft 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 AZ-204 exam.
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