- A
Enable Transparent Data Encryption (TDE) and store the encryption key in Azure Key Vault
Why wrong: TDE encrypts the database at rest but does not restrict access to plaintext from database administrators.
- B
Use Dynamic Data Masking to mask the credit card column for non-privileged users
Why wrong: Dynamic Data Masking only obscures data from certain users but does not encrypt it; administrators can still see the unmasked data.
- C
Implement Azure SQL Database's Always Encrypted with enclaves
Why wrong: Always Encrypted with secure enclaves allows server-side computations on encrypted data but still requires client-side key management; however, the question asks for application-layer decryption, which is not fully met by enclaves.
- D
Implement Always Encrypted and store the column encryption key in Azure Key Vault
Always Encrypted encrypts data at the client side, ensuring only authorized applications can decrypt. Administrators cannot access plaintext because they do not have the column encryption key.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
Your company uses Azure SQL Database and wants to protect sensitive data stored in a column named 'CreditCardNumber'. You need to ensure that the data is encrypted at rest and that only authorized users can decrypt the data at the application layer. Additionally, you want to prevent unauthorized administrators from accessing the plaintext. Which solution should you implement?
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
Implement Always Encrypted and store the column encryption key in Azure Key Vault
Option D is correct because Always Encrypted ensures data is encrypted at rest and in transit, and only client applications with the column encryption key can decrypt it; server administrators cannot access plaintext. Option A is wrong because TDE protects at rest but server administrators can still access plaintext. Option B is wrong because Dynamic Data Masking masks data but does not encrypt it. Option C is wrong because Transparent Data Encryption alone does not prevent server administrators from reading data.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable Transparent Data Encryption (TDE) and store the encryption key in Azure Key Vault
Why it's wrong here
TDE encrypts the database at rest but does not restrict access to plaintext from database administrators.
- ✗
Use Dynamic Data Masking to mask the credit card column for non-privileged users
Why it's wrong here
Dynamic Data Masking only obscures data from certain users but does not encrypt it; administrators can still see the unmasked data.
- ✗
Implement Azure SQL Database's Always Encrypted with enclaves
Why it's wrong here
Always Encrypted with secure enclaves allows server-side computations on encrypted data but still requires client-side key management; however, the question asks for application-layer decryption, which is not fully met by enclaves.
- ✓
Implement Always Encrypted and store the column encryption key in Azure Key Vault
Why this is correct
Always Encrypted encrypts data at the client side, ensuring only authorized applications can decrypt. Administrators cannot access plaintext because they do not have the column encryption key.
Related concept
Authentication checks who the user is.
Common exam traps
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.
Detailed technical explanation
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.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related AZ-500 questions on access control and AAA configuration.
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FAQ
Questions learners often ask
What does this AZ-500 question test?
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: Implement Always Encrypted and store the column encryption key in Azure Key Vault — Option D is correct because Always Encrypted ensures data is encrypted at rest and in transit, and only client applications with the column encryption key can decrypt it; server administrators cannot access plaintext. Option A is wrong because TDE protects at rest but server administrators can still access plaintext. Option B is wrong because Dynamic Data Masking masks data but does not encrypt it. Option C is wrong because Transparent Data Encryption alone does not prevent server administrators from reading data.
What should I do if I get this AZ-500 question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related AZ-500 questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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Last reviewed: Jun 20, 2026
This AZ-500 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-500 exam.
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