The answer is an Azure Monitor Log Analytics workspace configured with Microsoft Entra ID diagnostic settings. This is correct because Entra ID sign-in and audit logs are retained for only 30 days by default, so to store Entra ID logs for 1 year in Log Analytics, you must route them via diagnostic settings to a Log Analytics workspace, which supports configurable retention up to two years or more with a commitment tier. On the AZ-305 exam, this question tests your understanding of native Azure monitoring services for compliance and long-term log storage, often appearing as a trap where candidates mistakenly choose Azure Storage or Event Hubs—those can archive logs but do not support the querying and reporting needed for periodic compliance reports. A common memory tip is “30 days default, 2 years with Log Analytics,” or simply remember that diagnostic settings are the bridge between Entra ID and long-term retention.
AZ-305 Practice Question: Design identity, governance, and monitoring solutions
This AZ-305 practice question tests your understanding of design identity, governance, and monitoring solutions. 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. A key principle to apply: microsoft Entra ID diagnostic settings route logs to Log Analytics.. 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.
A company uses Microsoft Entra ID (Microsoft Entra ID). They need to generate periodic reports of user sign-ins and audit activities for compliance. They want to store the logs for 1 year. Which Azure service should they use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Azure Monitor Log Analytics workspace with Microsoft Entra ID diagnostic settings
Option B is correct because Microsoft Entra ID sign-in and audit logs are retained for only 30 days by default. To store them for 1 year, you must route the logs via diagnostic settings to an Azure Monitor Log Analytics workspace, which allows configurable retention up to 2 years (or more with a commitment tier). This is the only native Azure service that supports long-term retention of Entra ID logs for compliance reporting.
Key principle: Microsoft Entra ID diagnostic settings route logs to Log Analytics.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Microsoft Entra ID sign-in logs and audit logs with retention set to 1 year in the Azure portal
Why it's wrong here
Microsoft Entra ID does not natively support retention longer than 30 days (or 90 with P2) in the portal.
✓
Azure Monitor Log Analytics workspace with Microsoft Entra ID diagnostic settings
Why this is correct
Diagnostic settings send logs to Log Analytics, which allows configurable retention up to 2 years (or more).
Related concept
Microsoft Entra ID diagnostic settings route logs to Log Analytics.
✗
Azure Storage account with lifecycle management
Why it's wrong here
Storage can store logs, but querying and generating reports directly is not efficient; Log Analytics is designed for this.
✗
Azure Event Hubs for streaming
Why it's wrong here
Event Hubs is for real-time data ingestion, not for long-term retention and reporting.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume the Azure portal's retention slider for Entra ID logs can be extended beyond 30 days, but Microsoft intentionally limits it to 30 days to force the use of diagnostic settings and Log Analytics for long-term retention.
Detailed technical explanation
How to think about this question
When you configure diagnostic settings for Microsoft Entra ID, you can send logs to a Log Analytics workspace, where the Log Analytics agent collects and indexes the data for Kusto Query Language (KQL) queries. The retention policy is set at the workspace level (default 30 days, extendable to 730 days), and you can create scheduled queries or workbooks to generate periodic compliance reports. Under the hood, the logs are stored in Azure Data Explorer clusters, enabling fast search and aggregation even over a year's worth of data.
KKey Concepts to Remember
Microsoft Entra ID diagnostic settings route logs to Log Analytics.
Log Analytics workspaces support retention up to 730 days (2 years) by default.
Kusto Query Language (KQL) is used for querying logs in Log Analytics.
Log Analytics is designed for centralized log collection, analysis, and reporting.
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
Microsoft Entra ID diagnostic settings route logs to Log Analytics.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-305 question in full detail.
Review microsoft Entra ID diagnostic settings route logs to Log Analytics., then practise related AZ-305 questions on the same topic to reinforce the concept.
Design identity, governance, and monitoring solutions — This question tests Design identity, governance, and monitoring solutions — Microsoft Entra ID diagnostic settings route logs to Log Analytics..
What is the correct answer to this question?
The correct answer is: Azure Monitor Log Analytics workspace with Microsoft Entra ID diagnostic settings — Option B is correct because Microsoft Entra ID sign-in and audit logs are retained for only 30 days by default. To store them for 1 year, you must route the logs via diagnostic settings to an Azure Monitor Log Analytics workspace, which allows configurable retention up to 2 years (or more with a commitment tier). This is the only native Azure service that supports long-term retention of Entra ID logs for compliance reporting.
What should I do if I get this AZ-305 question wrong?
Review microsoft Entra ID diagnostic settings route logs to Log Analytics., then practise related AZ-305 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Microsoft Entra ID diagnostic settings route logs to Log Analytics.
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