Quick Answer
The answer is Azure Key Vault and Azure Monitor. Azure Key Vault is the correct service for storing application secrets because it provides hardware-backed encryption at rest using FIPS 140-2 validated HSMs, along with fine-grained access control policies. Azure Monitor, specifically its diagnostics logs and activity log capabilities, is then required to audit every access attempt, including read, write, and delete operations on those secrets, ensuring full traceability. On the AZ-204 exam, this pairing tests your understanding of the shared responsibility model for secret management—Key Vault handles encryption and access, while Monitor handles auditing. A common trap is choosing Azure App Configuration, which lacks native encryption at rest, or Storage Accounts, which lack built-in audit logging. Remember the mnemonic “Keys Keep Secrets, Monitor Monitors” to pair Key Vault for storage and Monitor for logging.
This AZ-204 practice question tests your understanding of implement azure security. 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.
You are designing a solution to store application secrets. You need to ensure that secrets are encrypted at rest and access is audited. Which TWO Azure services should you use?
Azure SQL Database
Why wrong: SQL Database is not a secret store.
Azure Monitor
Monitor can collect and analyze audit logs from Key Vault.
Azure Key Vault
Key Vault encrypts secrets and provides access logging.
Azure Storage Account with encryption
Why wrong: Storage accounts lack granular access control and audit capabilities for secrets.
Azure App Configuration
Why wrong: App Configuration does not encrypt secrets by default.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Azure Monitor
Option B is correct because Azure Key Vault provides encryption and access control. Option D is correct because Azure Monitor provides auditing via diagnostics logs. Option A is wrong because App Configuration does not provide encryption by default. Option C is wrong because Azure SQL Database is not designed for secret storage. Option E is wrong because Storage Accounts can store secrets but lack native auditing and access control.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure SQL Database
Why it's wrong here
SQL Database is not a secret store.
Azure Monitor
Why this is correct
Monitor can collect and analyze audit logs from Key Vault.
Related concept
Static NAT maps one inside address to one outside address.
Azure Key Vault
Why this is correct
Key Vault encrypts secrets and provides access logging.
Related concept
Static NAT maps one inside address to one outside address.
Azure Storage Account with encryption
Why it's wrong here
Storage accounts lack granular access control and audit capabilities for secrets.
Azure App Configuration
Why it's wrong here
App Configuration does not encrypt secrets by default.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
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
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related AZ-204 NAT questions on configuration and troubleshooting.
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FAQ
Implement Azure security — This question tests Implement Azure security — Static NAT maps one inside address to one outside address..
The correct answer is: Azure Monitor — Option B is correct because Azure Key Vault provides encryption and access control. Option D is correct because Azure Monitor provides auditing via diagnostics logs. Option A is wrong because App Configuration does not provide encryption by default. Option C is wrong because Azure SQL Database is not designed for secret storage. Option E is wrong because Storage Accounts can store secrets but lack native auditing and access control.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related AZ-204 NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
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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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