- A
Use the HTTP action with 'Active Directory OAuth' authentication and hardcode the client secret in the connection parameters.
Why wrong: Hardcoding secrets directly in the workflow definition or connection parameters exposes them in plaintext and violates security best practices.
- B
Create an Azure API connection (custom connector) with the OAuth 2.0 settings and store the secret in the connector's definition.
Why wrong: While custom connectors store secrets securely in Azure, they still require the secret to be provided during creation. The secret would be managed outside Key Vault, adding complexity.
- C
Enable a system-assigned managed identity for the Logic App, grant it access to Key Vault, use the 'Get secret' action to retrieve the client secret into a variable, then use the HTTP action with 'Active Directory OAuth' authentication referencing that variable for the secret.
This approach uses managed identity to securely access Key Vault, and the secret is passed at runtime without being exposed in the workflow definition. The HTTP action's OAuth authentication can use a variable for the client secret.
- D
Store the client secret in an Azure App Service application setting and reference it in the Logic App via a connector.
Why wrong: Logic Apps do not directly reference App Service application settings. Additionally, this would require the secret to be stored outside Key Vault, reducing security.
AZ-204 Practice Question: Connect to and consume Azure services and third-party services
This AZ-204 practice question tests your understanding of connect to and consume azure services and third-party services. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
You are building an Azure Logic App that must call a third-party REST API secured with OAuth 2.0 Client Credentials flow. The client ID and client secret are stored in Azure Key Vault. You need to securely obtain an access token and include it in requests to the API. Which approach should you use in the Logic App?
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
Enable a system-assigned managed identity for the Logic App, grant it access to Key Vault, use the 'Get secret' action to retrieve the client secret into a variable, then use the HTTP action with 'Active Directory OAuth' authentication referencing that variable for the secret.
Option C is correct because it securely retrieves the client secret from Azure Key Vault at runtime using a managed identity, avoiding any hardcoded secrets. The Logic App's system-assigned managed identity is granted access to Key Vault, then the 'Get secret' action fetches the secret into a variable, which is passed to the HTTP action's 'Active Directory OAuth' authentication. This approach follows the principle of least privilege and eliminates secret exposure in connection definitions or source code.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 HTTP action with 'Active Directory OAuth' authentication and hardcode the client secret in the connection parameters.
Why it's wrong here
Hardcoding secrets directly in the workflow definition or connection parameters exposes them in plaintext and violates security best practices.
- ✗
Create an Azure API connection (custom connector) with the OAuth 2.0 settings and store the secret in the connector's definition.
Why it's wrong here
While custom connectors store secrets securely in Azure, they still require the secret to be provided during creation. The secret would be managed outside Key Vault, adding complexity.
- ✓
Enable a system-assigned managed identity for the Logic App, grant it access to Key Vault, use the 'Get secret' action to retrieve the client secret into a variable, then use the HTTP action with 'Active Directory OAuth' authentication referencing that variable for the secret.
Why this is correct
This approach uses managed identity to securely access Key Vault, and the secret is passed at runtime without being exposed in the workflow definition. The HTTP action's OAuth authentication can use a variable for the client secret.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Store the client secret in an Azure App Service application setting and reference it in the Logic App via a connector.
Why it's wrong here
Logic Apps do not directly reference App Service application settings. Additionally, this would require the secret to be stored outside Key Vault, reducing security.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think a custom connector (Option B) is the correct way to handle OAuth 2.0, but they overlook that storing the secret in the connector definition is not secure and that managed identities with Key Vault provide a more robust and auditable solution.
Detailed technical explanation
How to think about this question
The OAuth 2.0 Client Credentials flow requires a client secret to obtain an access token from the token endpoint. By using a system-assigned managed identity, the Logic App authenticates to Key Vault without any credentials—Azure AD issues an access token for the managed identity, which Key Vault validates. The 'Get secret' action then retrieves the client secret as a secure string, which can be passed to the HTTP action's 'Active Directory OAuth' authentication type; this authentication type internally constructs the token request using the provided client ID, secret, and token endpoint URL. In a real-world scenario, this pattern enables automatic secret rotation in Key Vault without any code changes to the Logic App.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-204 question test?
Connect to and consume Azure services and third-party services — This question tests Connect to and consume Azure services and third-party services — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable a system-assigned managed identity for the Logic App, grant it access to Key Vault, use the 'Get secret' action to retrieve the client secret into a variable, then use the HTTP action with 'Active Directory OAuth' authentication referencing that variable for the secret. — Option C is correct because it securely retrieves the client secret from Azure Key Vault at runtime using a managed identity, avoiding any hardcoded secrets. The Logic App's system-assigned managed identity is granted access to Key Vault, then the 'Get secret' action fetches the secret into a variable, which is passed to the HTTP action's 'Active Directory OAuth' authentication. This approach follows the principle of least privilege and eliminates secret exposure in connection definitions or source code.
What should I do if I get this AZ-204 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 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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