Conditional Access MFA for External Access
Your organization is implementing a new policy to ensure that only authorized users can access sensitive financial data stored in Microsoft SharePoint Online. The security team wants to enforce multi-factor authentication (MFA) for all users accessing this data, but only when accessing from outside the corporate network. Which Microsoft Entra ID conditional access policy setting should you configure to meet this requirement?
Quick Answer
The correct answer is to configure the Grant access requiring multi-factor authentication when the location is not trusted setting. This is because Microsoft Entra ID Conditional Access policies evaluate conditions like location to enforce controls; by defining the corporate network as a trusted location, the policy dynamically requires MFA only when access originates from an untrusted location, such as a public Wi-Fi or a remote home office, while allowing seamless access from within the corporate perimeter. On the SC-900 exam, this scenario tests your understanding of location-based enforcement as a core Conditional Access condition, often appearing in questions that contrast Grant controls (which allow access with requirements) with Block controls (which deny access outright). A common trap is choosing a blanket block for external locations, which would prevent legitimate remote work, or confusing session controls with sign-in enforcement. Memory tip: think “Grant, don’t Block” for MFA—use Grant to add a requirement like MFA when the location is untrusted, rather than cutting off access entirely.
⚠ Common exam trap
A common mix-up: candidates confuse device compliance with MFA, or thinking that blocking access is the only way to secure external access. Candidates might also overlook the need to exclude trusted locations.
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
✓
Grant access requiring multi-factor authentication when the location is not trusted
The requirement is to enforce MFA for all users accessing sensitive financial data in SharePoint Online, but only when accessing from outside the corporate network. This is achieved by creating a Conditional Access policy that targets the SharePoint Online app, includes all users, and sets the condition to 'any location' excluding trusted locations, then grants access with the requirement of multi-factor authentication.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use app-enforced restrictions for SharePoint
Why it's wrong here
App-enforced restrictions govern session controls such as download and copy limits within SharePoint, not authentication strength. They are chosen when data-loss prevention inside an already-authenticated session is the goal; the scenario instead needs a grant control that triggers MFA for untrusted locations.
- ✗
Grant access requiring device to be marked as compliant when location is not trusted
Why it's wrong here
Device compliance is a separate grant control that checks Intune enrolment and health, not location-based MFA. It is correct when only managed, compliant devices may connect, but the requirement is to challenge untrusted-network sessions with a second factor regardless of device state.
- ✓
Grant access requiring multi-factor authentication when the location is not trusted
Why this is correct
Conditional access evaluates sign-in conditions before granting access. Configuring the grant control to require multi-factor authentication, scoped to the condition where location is not trusted, enforces MFA only for off-network access while trusted corporate connections proceed without the prompt.
- ✗
Block access when the location is not trusted
Why it's wrong here
Blocking untrusted locations denies access outright rather than challenging it with MFA, so legitimate remote users cannot reach SharePoint. Blocking is the correct control when policy forbids any external access, whereas the requirement here is to permit outside access only after a second authentication factor.
Go deeper
Related to this question
Learn chapter
Microsoft Intune for Endpoint Security
Key term
Conditional Access policy
A Conditional Access policy is a set of rules in Microsoft Entra ID that automatically grants or blocks access to cloud apps based on signals like user identity, location, device health, and risk level.
Key term
Authentication
Authentication is the process of verifying that someone or something is who or what it claims to be before granting access to a system or resource.
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Same concept, more angles
1 more way this is tested on SC-900
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization wants to enforce multi-factor authentication (MFA) for all users accessing cloud applications. Which Microsoft Entra ID feature should you configure?
easy- A.Configure Privileged Identity Management
- ✓ B.Create a Conditional Access policy
- C.Use Identity Protection
- D.Enable MFA per user
Why B: Conditional Access policies in Microsoft Entra ID are the recommended way to enforce MFA for all users accessing cloud applications. A Conditional Access policy evaluates signals (user, device, location, app, risk) and can require MFA as a grant control. This provides granular, centralized control and supports reporting and what-if analysis.
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This SC-900 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 SC-900 exam.