- A
Generate a SAS token for the storage account and store it in Key Vault. Retrieve the SAS token at runtime and use it to create the BlobServiceClient.
Why wrong: Incorrect: uses SAS token, not managed identity.
- B
Create a user-assigned managed identity, assign it to the Function app, and grant it 'Storage Blob Data Contributor' role. Store the client ID in app settings. Use ManagedIdentityCredential with the client ID in code.
Why wrong: Incorrect: system-assigned is simpler; but this is also valid, however the question implies minimal change; but option A is more straightforward.
- C
Keep the connection string in app settings but encrypt it using Azure Key Vault. Use Key Vault references to retrieve it.
Why wrong: Incorrect: still uses connection string, not managed identity.
- D
Enable system-assigned managed identity on the Function app. Assign the 'Storage Blob Data Contributor' role to the managed identity on the storage account. Remove the connection string from application settings. Update the code to use DefaultAzureCredential to authenticate to Blob Storage.
Correct: uses managed identity, no secrets.
Quick Answer
The correct answer is to enable a system-assigned managed identity on the Function app, assign the Storage Blob Data Contributor role to that identity on the storage account, remove the connection string from application settings, and update the code to use DefaultAzureCredential. This approach is correct because managed identities eliminate the need for stored credentials by providing an automatically managed Azure AD identity that your function can use to authenticate directly to Azure services, while DefaultAzureCredential handles the token acquisition chain seamlessly. On the AZ-204 exam, this scenario tests your understanding of securing Azure Functions by replacing connection strings with identity-based access, a key concept in the “Implement secure cloud solutions” objective. A common trap is choosing a user-assigned identity when a system-assigned one is simpler and sufficient for a single-function app, or mistakenly keeping a SAS token or access key. Memory tip: think “SAS is for sharing, managed identity is for securing” — and remember the three-step dance: Enable, Assign, Remove.
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.
Fabrikam Inc. has an Azure Function app that processes image uploads. Each time a blob is added to a container in Azure Blob Storage, the function is triggered. The function resizes the image and stores the result in another container. Currently, the function uses an Azure Storage account connection string stored in application settings. The security team requires that no connection strings or access keys be stored in application settings. The function must use managed identity to access the storage account. The storage account is in the same subscription. Which action should the team take?
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 system-assigned managed identity on the Function app. Assign the 'Storage Blob Data Contributor' role to the managed identity on the storage account. Remove the connection string from application settings. Update the code to use DefaultAzureCredential to authenticate to Blob Storage.
Enable system-assigned managed identity on the Function app, then assign the 'Storage Blob Data Contributor' role to the identity on the storage account. Remove the connection string from app settings. Use DefaultAzureCredential in code. Option A is correct. Option B is for user-assigned but unnecessary; still correct but not simplest. Option C uses access keys. Option D uses SAS token.
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.
- ✗
Generate a SAS token for the storage account and store it in Key Vault. Retrieve the SAS token at runtime and use it to create the BlobServiceClient.
Why it's wrong here
Incorrect: uses SAS token, not managed identity.
- ✗
Create a user-assigned managed identity, assign it to the Function app, and grant it 'Storage Blob Data Contributor' role. Store the client ID in app settings. Use ManagedIdentityCredential with the client ID in code.
Why it's wrong here
Incorrect: system-assigned is simpler; but this is also valid, however the question implies minimal change; but option A is more straightforward.
- ✗
Keep the connection string in app settings but encrypt it using Azure Key Vault. Use Key Vault references to retrieve it.
Why it's wrong here
Incorrect: still uses connection string, not managed identity.
- ✓
Enable system-assigned managed identity on the Function app. Assign the 'Storage Blob Data Contributor' role to the managed identity on the storage account. Remove the connection string from application settings. Update the code to use DefaultAzureCredential to authenticate to Blob Storage.
Why this is correct
Correct: uses managed identity, no secrets.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- 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 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.
Identify which AZ-204 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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Connect to and consume Azure services and third-party services — study guide chapter
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Connect to and consume Azure services and third-party services 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?
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 system-assigned managed identity on the Function app. Assign the 'Storage Blob Data Contributor' role to the managed identity on the storage account. Remove the connection string from application settings. Update the code to use DefaultAzureCredential to authenticate to Blob Storage. — Enable system-assigned managed identity on the Function app, then assign the 'Storage Blob Data Contributor' role to the identity on the storage account. Remove the connection string from app settings. Use DefaultAzureCredential in code. Option A is correct. Option B is for user-assigned but unnecessary; still correct but not simplest. Option C uses access keys. Option D uses SAS token.
What should I do if I get this AZ-204 question wrong?
Identify which AZ-204 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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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