Question 1easymultiple choice
Full question →easymultiple choiceObjective-mapped
Your company stores API keys and connection strings in Azure Key Vault. You need to grant an Azure Function read access to these secrets using the principle of least privilege. Which identity type should you assign to the Function App?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
A
Best answer
System-assigned managed identity
Correct. A system-assigned managed identity is automatically managed by Azure and can be granted precise Key Vault permissions, meeting least privilege.
B
Distractor review
User-assigned managed identity
Incorrect. While it works, a user-assigned identity adds unnecessary complexity when only one resource needs access. It is not the simplest least-privilege choice.
C
Distractor review
Service principal
Incorrect. Service principals require creating and managing credentials (client secret/certificate), which contradicts the goal of storing secrets in Key Vault without managing credentials.
D
Distractor review
Access policy on the Key Vault
Incorrect. An access policy defines permissions for an identity; it is not an identity itself. The resource still needs an identity (e.g., managed identity) to attach the policy to.
Common exam trap
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.
Technical deep dive
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.
Related practice questions
Related AZ-204 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
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Question 5
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Question 6
You are monitoring an Azure App Service using Application Insights. You notice that the server response time is high for certain requests. You need to drill down to see which external dependencies (like databases or APIs) are causing the delay. Which Application Insights feature should you use?
FAQ
Questions learners often ask
What does this AZ-204 question test?
Authentication checks who the user is.
What is the correct answer to this question?
The correct answer is: System-assigned managed identity — A system-assigned managed identity is automatically created for the Azure resource (e.g., Function App) and tied to its lifecycle. This identity can be granted specific permissions (e.g., Key Vault Secrets User) without storing any credentials. User-assigned managed identities are useful when multiple resources share the same identity but add overhead. Service principals require manual credential management. Access policies are not identities; they define permissions for an identity.
What should I do if I get this AZ-204 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
Discussion
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