- A
Set the connection string as an environment variable in the App Service using the Azure CLI and rely on the Key Vault backup.
Why wrong: Environment variables do not support automatic rotation.
- B
Create an Azure App Configuration store, import the secrets from Key Vault, and change the application to use the App Configuration provider.
Why wrong: Requires code changes and additional service.
- C
In the Azure portal, update the App Service application settings to reference the Key Vault secrets using the Key Vault references feature. Enable the system-assigned managed identity for the App Service and grant it Get and List permissions on the Key Vault.
Key Vault references allow secure access without code changes and support automatic rotation.
- D
Modify the application code to use the Azure Identity SDK to authenticate to Key Vault via managed identity and retrieve the connection string.
Why wrong: Requires code changes.
Quick Answer
The correct approach is to use Key Vault references in App Service application settings, which allows you to point directly to secrets stored in Azure Key Vault using the syntax @Microsoft.KeyVault(SecretUri=...). This works because App Service automatically resolves these references at runtime using the system-assigned managed identity you enable on the web app, eliminating any need to store credentials in code or configuration files while supporting automatic secret rotation. On the AZ-204 exam, this scenario tests your understanding of how managed identities and Key Vault references combine to meet security mandates with zero code changes—a common trap is thinking you need App Configuration or the Key Vault SDK, but those require additional setup and code modifications. Remember the mnemonic “M.I. for K.V. refs”: Managed Identity enables Key Vault references without code changes.
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. 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 a developer at Contoso Ltd. The company has an existing .NET Core web application hosted on Azure App Service that allows users to upload images. The application currently stores images directly to Azure Blob Storage using connection strings stored in the Web.config file. The security team has mandated that all secrets must be stored in Azure Key Vault and rotated automatically. Additionally, the application must be able to access the Key Vault without storing any credentials in the application code or configuration files. The application uses Microsoft Entra ID for user authentication. You need to modify the application to meet these requirements with minimal changes to the application code. You have the following resources: an Azure Key Vault instance with the secrets (storage account connection string) already stored; a managed identity enabled for the App Service. You want to use the Key Vault references feature of Azure App Configuration or direct Key Vault access. Which approach should you 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
In the Azure portal, update the App Service application settings to reference the Key Vault secrets using the Key Vault references feature. Enable the system-assigned managed identity for the App Service and grant it Get and List permissions on the Key Vault.
The correct approach is to use Key Vault references in the App Service application settings. This allows you to reference a secret stored in Key Vault using a syntax like @Microsoft.KeyVault(SecretUri=...). The App Service will automatically retrieve the secret using the system-assigned managed identity, and no code changes are required. Option A is correct. Option B is incorrect because using App Configuration would require additional setup and code changes to reference the configuration. Option C is incorrect because manually retrieving secrets via SDK requires code changes. Option D is incorrect because environment variables set directly are not rotated automatically.
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.
- ✗
Set the connection string as an environment variable in the App Service using the Azure CLI and rely on the Key Vault backup.
Why it's wrong here
Environment variables do not support automatic rotation.
- ✗
Create an Azure App Configuration store, import the secrets from Key Vault, and change the application to use the App Configuration provider.
Why it's wrong here
Requires code changes and additional service.
- ✓
In the Azure portal, update the App Service application settings to reference the Key Vault secrets using the Key Vault references feature. Enable the system-assigned managed identity for the App Service and grant it Get and List permissions on the Key Vault.
Why this is correct
Key Vault references allow secure access without code changes and support automatic rotation.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Modify the application code to use the Azure Identity SDK to authenticate to Key Vault via managed identity and retrieve the connection string.
Why it's wrong here
Requires code changes.
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: In the Azure portal, update the App Service application settings to reference the Key Vault secrets using the Key Vault references feature. Enable the system-assigned managed identity for the App Service and grant it Get and List permissions on the Key Vault. — The correct approach is to use Key Vault references in the App Service application settings. This allows you to reference a secret stored in Key Vault using a syntax like @Microsoft.KeyVault(SecretUri=...). The App Service will automatically retrieve the secret using the system-assigned managed identity, and no code changes are required. Option A is correct. Option B is incorrect because using App Configuration would require additional setup and code changes to reference the configuration. Option C is incorrect because manually retrieving secrets via SDK requires code changes. Option D is incorrect because environment variables set directly are not rotated automatically.
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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