Official Exam Details: (SC-300)

Exam Code:
SC-300

Passing Score:
70%

Total Question Bank:
391 Verified Questions

Exam Duration:
120 Minutes

Exam Format & Question Types

This certification exam features multiple-choice questions (single and multi-select), interactive Hotspots, Hot Areas, and Drag-and-Drop scenario configurations designed to test real-world technical competency.

SC-300: Microsoft Identity and Access Administrator – Certification Study Guide & Architectural Blueprint

1. Exam Overview & Profile

The SC-300 exam targets professionals responsible for designing, implementing, and monitoring identity and access management solutions using Microsoft Azure Active Directory (Azure AD). This includes managing user and group identities, implementing authentication and access management, and enforcing identity governance. Candidates are expected to have a strong understanding of Azure AD’s core services and their practical application in securing enterprise environments.

Target Audience: Identity and Access Administrators, Security Engineers, Cloud Architects specializing in Microsoft identity solutions.
Question Count: Typically ranges from 40-60 questions, including multiple-choice, drag-and-drop, and case study formats.
Duration: Approximately 120-150 minutes.
Passing Score Context: A scaled score of 700 or higher is required to pass, indicating a strong proficiency across all measured skills.

2. Deep-Dive Domain Breakdown

Domain 1: Implement an Identity Management Solution (25-30%)

Azure AD User and Group Management: Understand creation, administration, properties, and usage of security, Microsoft 365, and dynamic groups. Implement administrative units for delegated administration.
External Identities: Architect B2B collaboration for guest users and B2C tenants for consumer-facing applications. Configure identity providers and external user lifecycle management.
Hybrid Identity: Deep understanding of Azure AD Connect for synchronization, password hash synchronization (PHS), pass-through authentication (PTA), and federation (AD FS). Troubleshoot common synchronization issues.
Device Identities: Implement Azure AD Join, Hybrid Azure AD Join, and Azure AD registration for device management and Conditional Access integration.

Domain 2: Implement an Authentication and Access Management Solution (25-30%)

Multi-Factor Authentication (MFA): Plan and implement MFA settings, methods (Authenticator app, FIDO2, phone calls, SMS), and trusted IPs.
Passwordless Authentication: Design and deploy passwordless solutions using FIDO2 security keys, Windows Hello for Business, and Microsoft Authenticator app.
Conditional Access: Master the creation and management of Conditional Access policies, including conditions (users, apps, devices, locations), grant controls (MFA, compliant device), and session controls (MFA frequency, sign-in frequency).
Single Sign-On (SSO): Configure SSO for SaaS applications, enterprise applications, and custom line-of-business apps using SAML, OAuth, and OpenID Connect.

Domain 3: Implement Access Management for Applications (15-20%)

Application Registrations: Understand app manifest, API permissions (delegated vs. application), consent framework, and custom role assignments for registered applications.
Enterprise Applications: Manage gallery and non-gallery applications, user assignments, and SSO configuration (SAML/OAuth).
Service Principals & Managed Identities: Differentiate between application objects, service principals, and their use cases. Implement system-assigned and user-assigned managed identities for Azure resource authentication.

Domain 4: Implement an Identity Governance Solution (20-25%)

Privileged Identity Management (PIM): Configure PIM for Azure AD roles and Azure resources. Implement just-in-time (JIT) access, eligible assignments, activation settings, and access reviews for PIM roles.
Entitlement Management: Create and manage access packages, catalogs, policies, and connected organizations. Configure request and approval workflows for resource access.
Access Reviews: Schedule and configure recurring access reviews for groups, applications, and PIM roles, including settings for guest users and reviewers.
Terms of Use: Implement and integrate Terms of Use policies with Conditional Access for user acknowledgment.

3. High-Yield Exam Tips & Scenario Traps

Architectural Decision Rules:
- Always choose Conditional Access for policy-driven access enforcement.
- Utilize Privileged Identity Management (PIM) for just-in-time, time-bound access to high-privilege roles.
- Implement Entitlement Management for scalable access provisioning to applications, groups, and SharePoint sites, especially for self-service and external collaboration.
- Leverage Managed Identities for secure, credential-free authentication of Azure resources to Azure AD-protected services.
- Azure AD Connect is the primary tool for hybrid identity synchronization.
- Prioritize passwordless methods for enhanced security and user experience.
Common Scenario Traps:
- Confusing B2B collaboration (external partners) with B2C (consumer apps).
- Incorrectly applying Conditional Access policies (e.g., targeting “All cloud apps” when specific apps are needed, or not excluding emergency access accounts).
- Choosing PIM when Entitlement Management is a better fit for broad access package management, or vice-versa.
- Misunderstanding the difference between user consent and admin consent for application permissions.
- Overlooking administrative units for delegated administration in large, decentralized organizations.
- Failing to consider the impact of licensing requirements (e.g., Azure AD Premium P1/P2 for PIM, Entitlement Management, and most advanced Conditional Access features).

4. Frequently Asked Questions (FAQ)

Q1: How should I structure my study time for SC-300?
A: Begin with the official Microsoft Learn paths for SC-300, which provide structured learning modules. Complement this with extensive hands-on practice in an Azure AD tenant, configuring each service (PIM, Conditional Access, App Registrations, etc.). Finally, use practice exams to identify knowledge gaps and focus your remaining study efforts.

Q2: Are there labs or practical exercises in the SC-300 exam?
A: While the SC-300 exam primarily features multiple-choice, drag-and-drop, and case study questions, practical experience is crucial. The questions are highly scenario-based, requiring you to apply your knowledge as if you were configuring the solutions in the Azure portal. Hands-on experience will significantly boost your ability to interpret and solve these scenarios.

Q3: What’s the best strategy for approaching scenario-based questions?
A: For scenario questions, first, identify the core problem and all stated requirements/constraints. Pay close attention to keywords like “most secure,” “least administrative effort,” or “cost-effective.” Eliminate answers that do not meet all requirements or introduce unnecessary complexity. Choose the solution that leverages native Azure AD capabilities most effectively and securely.

Q4: How important is understanding PowerShell or Azure CLI for SC-300?
A: While the exam focuses on conceptual understanding and portal-based configuration, familiarity with Azure AD PowerShell cmdlets can deepen your understanding of the underlying capabilities and configuration options. It’s not typically tested directly in terms of syntax, but knowing what’s possible via script can aid in scenario comprehension and validation of portal-based actions.

Free SC-300 Sample Practice Questions

Test your knowledge with these sample scenario questions complete with verified explanations:

Case Study: Contoso, Ltd

Overview
Contoso, Ltd. is a consulting company that has a main office in Montreal and branch offices in London and Seattle.
Contoso has a partnership with a company named Fabrikam, Inc. Fabrikam has an Azure AD tenant named fabrikam.com.

Existing Environment
The on-premises network of Contoso contains an Active Directory domain named contoso.com. The domain contains an organizational unit (OU) named Contoso_Resources. The Contoso_Resources OU contains all users and computers.

The contoso.com Active Directory domain contains the relevant users shown in the following table.

Contoso also includes a marketing department that has users in each office.

Existing Environment. Microsoft 365/Azure Environment

Contoso has an Azure AD tenant named contoso.com that has the following associated licenses:

• Microsoft Office 365 Enterprise E5
• Enterprise Mobility + Security E5
• Windows 10 Enterprise E3
• Project Plan 3

Azure AD Connect is configured between Azure AD and Active Directory Domain Services (AD DS). Only the Contoso_Resources OU is synced.

Helpdesk administrators routinely use the Microsoft 365 admin center to manage user settings.

User administrators currently use the Microsoft 365 admin center to manually assign licenses. All users have all licenses assigned besides the following exceptions:

• The users in the London office have the Microsoft 365 Phone System license unassigned.
• The users in the Seattle office have the Yammer Enterprise license unassigned.

Security defaults are disabled for contoso.com.

Contoso uses Azure AD Privileged Identity Management (PIM) to protect administrative roles.

Existing Environment. Problem Statements
Contoso identifies the following issues:

• Currently, all the helpdesk administrators can manage user licenses throughout the entire Microsoft 365 tenant.
• The user administrators report that it is tedious to manually configure the different license requirements for each Contoso office.
• The helpdesk administrators spend too much time provisioning internal and guest access to the required Microsoft 365 services and apps.
• Currently, the helpdesk administrators can perform tasks by using the User administrator role without justification or approval.
• When the Logs node is selected in Azure AD, an error message appears stating that Log Analytics integration is not enabled.

Contoso plans to implement the following changes:

• Implement self-service password reset (SSPR).
• Analyze Azure audit activity logs by using Azure Monitor.
• Simplify license allocation for new users added to the tenant.
• Collaborate with the users at Fabrikam on a joint marketing campaign.
• Configure the User administrator role to require justification and approval to activate.
• Implement a custom line-of-business Azure web app named App1. App1 will be accessible from the internet and authenticated by using Azure AD accounts.
• For new users in the marketing department, implement an automated approval workflow to provide access to a Microsoft SharePoint Online site, group, and app.

Contoso plans to acquire a company named A. Datum Corporation. One hundred new A. Datum users will be created in an Active Directory OU named Adatum. The users will be located in London and Seattle.

Technical Requirements
Contoso identifies the following technical requirements:

• All users must be synced from AD DS to the contoso.com Azure AD tenant.
• App1 must have a redirect URI pointed to https://contoso.com/auth-response.
• License allocation for new users must be assigned automatically based on the location of the user.
• Fabrikam users must have access to the marketing department’s SharePoint site for a maximum of 90 days.
• Administrative actions performed in Azure AD must be audited. Audit logs must be retained for one year.
• The helpdesk administrators must be able to manage licenses for only the users in their respective office.
• Users must be forced to change their password if there is a probability that the users’ identity was compromised.

QUESTION 1

Scenario: Contoso, Ltd

You need to sync the ADatum users. The solution must meet the technical requirements. What should you do?

A. From the Microsoft Azure Active Directory Connect wizard, select Customize synchronization options.
B. From PowerShell, run Set-ADSyncScheduler.
C. From PowerShell, run Start-ADSyncSyncCycle.
D. From the Microsoft Azure Active Directory Connect wizard, select Change user sign-in.

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅

Reasoning: To include new OUs like ‘Adatum’ in the synchronization scope, you must modify the Azure AD Connect configuration. The "Customize synchronization options" in the wizard allows you to select or deselect specific OUs for synchronization. ❌ Why the other choices are incorrect:

Option B is incorrect: Set-ADSyncScheduler configures the synchronization schedule, not the OUs included in the sync scope.
Option C is incorrect: Start-ADSyncSyncCycle triggers an immediate sync using the current configuration; it does not modify which OUs are synced.
Option D is incorrect: "Change user sign-in" modifies the authentication method (e.g., password hash sync, PTA), not the OUs included in synchronization.

QUESTION 2 [HOT_AREA]

Scenario: Contoso, Ltd

You need to meet the technical requirements for license management by the helpdesk administrators.

What should you create first, and which tool should you use? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **An administrative unit **

Reasoning: To restrict helpdesk administrators’ ability to manage licenses to only users in their respective office, you must create Administrative Units (AUs). AUs allow you to group Azure AD objects and delegate administrative permissions (like License Administrator) over only those specific objects.

✅ **Azure Active Directory admin center **

Reasoning: Administrative units are an Azure AD feature. The creation, management, and assignment of administrative roles scoped to Administrative Units are performed within the Azure Active Directory admin center (portal.azure.com or entra.microsoft.com).

Case Study: Litware, Inc.

Instructions

This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.

To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study.

At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section.

To start the case study

To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question.

Overview

Litware, Inc. is a pharmaceutical company that has a subsidiary named Fabrikam, Inc.

Litware has offices in Boston and Seattle, but has employees located across the United States. Employees connect remotely to either office by using a VPN connection.

Existing Environment

Identity Environment

The network contains an Active Directory forest named litware.com that is linked to an Azure Active Directory (Azure AD) tenant named litware.com. Azure AD Connect uses pass-through authentication and has password hash synchronization disabled.

Litware.com contains a user named User1 who oversees all application development. Litware implements Azure AD Application Proxy.

Fabrikam has an Azure AD tenant named fabrikam.com. The users at Fabrikam access the resources in litware.com by using guest accounts in the litware.com tenant.

Cloud Environment

All the users at Litware have Microsoft 365 Enterprise E5 licenses. All the built-in anomaly detection policies in Microsoft Cloud App Security are enabled.

Litware has an Azure subscription associated to the litware.com Azure AD tenant. The subscription contains an Azure Sentinel instance that uses the Azure Active Directory connector and the Office 365 connector. Azure Sentinel currently collects the Azure AD sign-ins logs and audit logs.

On-premises Environment

The on-premises network contains the servers shown in the following table.

Both Litware offices connect directly to the internet. Both offices connect to virtual networks in the Azure subscription by using a site-to-site VPN connection. All on-premises domain controllers are prevented from accessing the internet.

Requirements

Delegation Requirements

Litware identifies the following delegation requirements:

Delegate the management of privileged roles by using Azure AD Privileged Identity Management (PIM). Prevent nonprivileged users from registering applications in the litware.com Azure AD tenant.

Use custom programs for Identity Governance.

Ensure that User1 can create enterprise applications in Azure AD. Use the principle of least privilege.

Licensing Requirements

Litware recently added a custom user attribute named LWLicenses to the litware.com Active Directory forest. Litware wants to manage the assignment of Azure AD licenses by modifying the value of the LWLicenses attribute. Users who have the appropriate value for LWLicenses must be added automatically to a Microsoft 365 group that has the appropriate licenses assigned.

Management Requirements

Litware wants to create a group named LWGroup1 that will contain all the Azure AD user accounts for Litware but exclude all the Azure AD guest accounts.

Authentication Requirements

Litware identifies the following authentication requirements:

Implement multi-factor authentication (MFA) for all Litware users by using conditional access policies. Exempt users from using MFA to authenticate to Azure AD from the Boston office of Litware.

Implement a banned password list for the litware.com forest. Enforce MFA when accessing on-premises applications.

Automatically detect and remediate externally leaked credentials.

Access Requirements

Litware identifies the following access requirements:

Control all access to all Azure resources and Azure AD applications by using conditional access policies. Implement a conditional access policy that has session controls for Microsoft SharePoint Online.

Control privileged access to applications by using access reviews in Azure AD.

Monitoring Requirements

Litware wants to use the Fusion rule in Azure Sentinel to detect multi-staged attacks that include a combination of suspicious Azure AD sign-ins followed by anomalous Microsoft Office 365 activity.

QUESTION 3 [HOT_AREA]

Scenario: Litware, Inc.

You need to configure the assignment of Azure AD licenses to the Litware users. The solution must meet the licensing requirements. What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **Extensions **

Reasoning: To manage Azure AD licenses by modifying a custom on-premises Active Directory attribute (LWLicenses), that attribute must first be synchronized to Azure AD. Azure AD Connect’s Directory Extensions feature is used to synchronize custom attributes from on-premises AD to Azure AD.

✅ **Azure Active Directory group that has the Dynamic User membership type **

Reasoning: The requirement states users must be "added automatically to a Microsoft 365 group that has the appropriate licenses assigned" based on the LWLicenses attribute. A Dynamic User membership type group allows defining rules based on user attributes (like LWLicenses) for automatic membership management, which then facilitates group-based licensing.

QUESTION 4

Scenario: Litware, Inc.

You need to meet the authentication requirements for leaked credentials. What should you do?

A. Enable password hash synchronization in Azure AD Connect.
B. Configure Azure AD Password Protection.
C. Configure an authentication method policy in Azure AD.
D. Enable federation with PingFederate in Azure AD Connect.

Click to View Verified Solution & Explanation

Correct Option: A

Explanation:

To meet the requirement of automatically detecting and remediating externally leaked credentials for users whose passwords originate from the on-premises Active Directory, Password Hash Synchronization (PHS) must be enabled in Azure AD Connect. Currently, the environment uses pass-through authentication and has PHS disabled. Azure AD Identity Protection, which is included with Microsoft 365 Enterprise E5 licenses, relies on PHS to send a hash of the user’s on-premises password to Azure AD. Azure AD can then compare this hash against known leaked credential databases. If a match is found, Identity Protection marks the user as having ‘leaked credentials’ risk, enabling subsequent remediation actions (e.g., forced password reset via Conditional Access policies). Without PHS, Azure AD cannot perform this check for on-premises synchronized users.

Reference: https://docs.microsoft.com/en-us/azure/active-directory/identity-protection/concept-identity-protection-security-overview

General Practice Questions

QUESTION 5 [HOT_AREA]

You need to identify which roles to use for managing role assignments. The solution must meet the delegation requirements. What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **role administrator **

Reasoning: The Privileged Role Administrator is the dedicated Azure AD role for managing all Azure AD role assignments, including other built-in roles. This aligns with the principle of least privilege for delegating role assignment management within Azure AD.

✅ **access administrator **

Reasoning: The User Access Administrator is an Azure RBAC role designed to manage user access to Azure resources. When assigned at a specific scope (e.g., subscription), it allows assigning other Azure built-in (RBAC) roles within that scope.

QUESTION 6 [HOT_AREA]

You need to create the LWGroup1 group to meet the management requirements.

How should you complete the dynamic membership rule? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ Null

Reasoning: Selecting "Null" for (user.objectId -ne Null) ensures this part of the rule is always true for any existing user object, as every user has an objectId. It doesn’t restrict the group but forms a valid predicate.

✅ Member

Reasoning: Selecting "Member" for (user.userType -eq "Member") correctly includes all users designated as "Member" in the tenant. This is a common requirement for creating dynamic groups for internal staff.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/groups-dynamic-membership

QUESTION 7

Your network contains an on-premises Active Directory domain that syncs to an Azure Active Directory (Azure AD) tenant. Users sign in to computers that run Windows 10 and are joined to the domain.

You plan to implement Azure AD Seamless Single Sign-On (Azure AD Seamless SSO). You need to configure the Windows 10 computers to support Azure AD Seamless SSO. What should you do?

A. Configure Sign-in options from the Settings app.
B. Enable Enterprise State Roaming.
C. Modify the Intranet Zone settings.
D. Install the Azure AD Connect Authentication Agent.

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: Azure AD Seamless SSO relies on Kerberos. For Windows 10 computers to automatically send Kerberos tickets to Azure AD authentication endpoints (e.g., autologon.microsoftazuread-sso.com), these URLs must be added to the Local Intranet Zone in the browser’s security settings. This is typically configured via Group Policy. ❌ Why the other choices are incorrect:

Option A is incorrect: Configuring Sign-in options in the Settings app manages local login methods like PINs or Windows Hello. These settings do not configure the browser for Azure AD Seamless SSO.
Option B is incorrect: Enterprise State Roaming synchronizes user settings and application data across devices. It is unrelated to enabling the client-side authentication mechanism for Azure AD Seamless SSO.
Option D is incorrect: The Azure AD Connect Authentication Agent is installed on servers within the corporate network for Pass-through Authentication. It is a backend component, not installed on end-user Windows 10 clients for client-side Seamless SSO.

QUESTION 8

You have an Azure Active Directory (Azure AD) tenant that contains the following objects:

A device named Device1

Users named User1, User2, User3, User4, and User5

Groups named Group1, Group2, Group3, Group4, and Group5

The groups are configured as shown in the following table.

To which groups can you assign a Microsoft Office 365 Enterprise E5 license directly?

A. Group1 and Group4 only
B. Group1, Group2, Group3, Group4, and Group5
C. Group1 and Group2 only
D. Group1 only
E. Group1, Group2, Group4, and Group5 only

Click to View Verified Solution & Explanation

Correct Option: E

Explanation: ✅

Reasoning: Group1 (Security, Assigned), Group2 (Security, Dynamic User), Group4 (Microsoft 365, Assigned), and Group5 (Microsoft 365, Dynamic User) are all eligible for direct license assignment. Licenses can be assigned to Security or Microsoft 365 groups with assigned or dynamic user membership. ❌ Why the other choices are incorrect:

Option A, C, D are incorrect: These options omit one or more of the eligible groups (Group2, Group4, Group5).
Option B is incorrect: Group3 is a Dynamic Device group. Licenses are assigned to users, not devices, so groups containing devices via dynamic device membership cannot be directly assigned user licenses.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/licensing-groups-assign

QUESTION 9

You have a Microsoft Exchange organization that uses an SMTP address space of contoso.com.

Several users use their contoso.com email address for self-service sign-up to Azure Active Directory (Azure AD). You gain global administrator privileges to the Azure AD tenant that contains the self-signed users.

You need to prevent the users from creating user accounts in the contoso.com Azure AD tenant for self-service sign-up to Microsoft 365 services. Which PowerShell cmdlet should you run?

A. Set-MsolCompanySettings
B. Set-MsolDomainFederationSettings
C. Update-MsolfederatedDomain
D. Set-MsolDomain

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅ **Set-MsolCompanySettings **

Reasoning: This cmdlet is used to manage tenant-wide settings in Azure AD. Specifically, the AllowAdHocSubscriptions and AllowEmailVerifiedUsers parameters control whether users can perform self-service sign-up to create or join unmanaged Azure AD tenants using their email addresses from verified domains, directly addressing the requirement. ❌ Why the other choices are incorrect:

Option B is incorrect: Set-MsolDomainFederationSettings configures federation settings for a specific domain, dealing with authentication protocols, not self-service sign-up for unmanaged tenants.
Option C is incorrect: Update-MsolFederatedDomain updates settings for an existing federated domain, also unrelated to controlling self-service sign-up for unmanaged tenants.
Option D is incorrect: Set-MsolDomain manages general properties of a domain in Azure AD (like default status or authentication type), but it does not control self-service sign-up policies.

Reference: https://learn.microsoft.com/en-us/powershell/module/msonline/set-msolcompanysettings

QUESTION 10

You have a Microsoft 365 tenant that uses the domain named fabrikam.com. The Guest invite settings for Azure Active Directory (Azure AD) are configured as shown in the exhibit. (Click the Exhibit tab.)

A user named bsmith@fabrikam.com shares a Microsoft SharePoint Online document library to the users shown in the following table.

Which users will be emailed a passcode?

A. User2 only
B. User1 only
C. User1 and User2 only
D. User1, User2, and User3

Click to View Verified Solution & Explanation

Correct Option: A

Explanation:

✅

Reasoning: User2 is a new external user, identified by an outlook.com email and described as having never accessed resources. Since “Email One-Time Passcode for guests” is enabled, Azure AD will email User2 a passcode for authentication upon their first access. ❌ Why the other choices are incorrect:

Option B is incorrect: User1 is already an existing guest user in fabrikam.com. They have an established account and will use their existing identity to access the shared resource, not requiring a new passcode email for access.
Option C is incorrect: User1 is an existing guest and User3 is an internal user. Neither will receive a passcode. Only User2, as a new external user, requires a passcode based on the settings.
Option D is incorrect: User1 is an existing guest and User3 is an internal user. Both are incorrect recipients for an emailed passcode. Only User2, as a new external user, will receive a passcode.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/external-identities/one-time-passcode

QUESTION 11

You have 2,500 users who are assigned Microsoft Office 365 Enterprise E3 licenses. The licenses are assigned to individual users. From the Groups blade in the Azure Active Directory admin center, you assign Microsoft 365 Enterprise E5 licenses to the users. You need to remove the Office 365 Enterprise E3 licenses from the users by using the least amount of administrative effort.

What should you use?

A. the Identity Governance blade in the Azure Active Directory admin center
B. the Set-AzureAdUser cmdlet
C. the Licenses blade in the Azure Active Directory admin center
D. the Set-WindowsProductKey cmdlet

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: The Licenses blade in the Azure Active Directory admin center (now Microsoft Entra admin center) enables selecting multiple users and performing bulk license removal, which is the least administrative effort for 2,500 users. ❌ Why the other choices are incorrect:

Option A is incorrect: The Identity Governance blade manages access reviews, entitlement management, and PIM, not direct license assignment or removal.
Option B is incorrect: While PowerShell can remove licenses, using the portal for bulk removal is less administrative effort than scripting or individual cmdlet execution for 2,500 users.
Option D is incorrect: The Set-WindowsProductKey cmdlet is used for managing Windows operating system product keys and has no relevance to Microsoft 365 license management.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/licensing-azure-active-directory-portal

QUESTION 12 [HOT_AREA]

You have a Microsoft 365 tenant named contoso.com. Guest user access is enabled.

Users are invited to collaborate with contoso.com as shown in the following table.

From the External collaboration settings in the Azure Active Directory admin center, you configure the Collaboration restrictions settings as shown in the following exhibit.

From a Microsoft SharePoint Online site, a user invites user3@adatum.com to the site.

For each of the following statements, select Yes if the statement is true. Otherwise, select No.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: User1’s email (User1@outlook.com) matches "Outlook.com" in the "Allow invitations only to the specified domains" list. Since the domain is explicitly allowed, User1 can accept the invitation.

✅

Reasoning: User2 has already accepted the invitation (Invitation accepted: Yes), making them an existing guest user. Collaboration restrictions primarily govern new invitation redemptions, not the access of previously accepted guests from a domain, unless specific revocation policies are applied.

✅

Reasoning: User3’s email domain (adatum.com) is not listed in the "Allow invitations only to the specified domains" configuration. This restriction prevents invitations from being accepted by users from any domain not explicitly specified.

QUESTION 13 (Multi-Select)

You have an Azure Active Directory (Azure AD) tenant named contoso.com. You plan to bulk invite Azure AD business-to-business (B2B) collaboration users.

Which two parameters must you include when you create the bulk invite? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

A. email address
B. redirection URL
C. username
D. shared key
E. password

Click to View Verified Solution & Explanation

Correct Option: A,B

Explanation: ✅ **email address **

Reasoning: The email address of the external user is fundamental and mandatory for sending the invitation. Azure AD uses this to identify and send the invite to the target recipient.

✅ **redirection URL **

Reasoning: The redirection URL is a required parameter that specifies where the invited user will be directed after successfully redeeming their invitation. It’s crucial for guiding new users to the intended resource. ❌ Why the other choices are incorrect:

Option C is incorrect: A username is typically generated or derived from the email address. You do not provide a username as a mandatory parameter during the bulk invite process for B2B guests.
Option D is incorrect: A shared key is irrelevant for inviting B2B users; it’s used in contexts like VPNs or network security, not identity invitation.
Option E is incorrect: B2B guest users authenticate using their existing identity provider (e.g., Microsoft account, Google, federated ID). You do not set a password for them during the invitation.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/external-identities/bulk-invite-users-portal

QUESTION 14

You have an Azure Active Directory (Azure AD) tenant that contains the objects shown in the following table.

Which objects can you add as members to Group3?

A. User2 and Group2 only
B. User2, Group1, and Group2 only
C. User1, User2, Group1 and Group2
D. User1 and User2 only
E. User2 only

Click to View Verified Solution & Explanation

Correct Option: E

Explanation: ✅

Reasoning: Group3 is a Mail-enabled security group. Mail-enabled security groups can contain users with mailboxes and other mail-enabled security groups. User2 has an Office 365 E5 license, implying an Exchange Online mailbox, making them mail-enabled. ❌ Why the other choices are incorrect:

Option A, B, C (Incorrect): Group2 is a Microsoft 365 group, which cannot be a member of a Mail-enabled security group.
Option A, B, C, D (Incorrect): Group1 is a "Security group," not explicitly a "Mail-enabled security group." Mail-enabled security groups can only contain other mail-enabled security groups as nested members.
Option A, B, C, D (Incorrect): User1 has no license, implying no Exchange Online mailbox. While technically addable to a security group, for a mail-enabled security group, members are typically expected to have mailboxes to fully function for email distribution.

QUESTION 15 [DRAG_DROP]

You have an on-premises Microsoft Exchange organization that uses an SMTP address space of contoso.com. You discover that users use their email address for self-service sign-up to Microsoft 365 services.

You need to gain global administrator privileges to the Azure Active Directory (Azure AD) tenant that contains the self-signed users.

Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

Select and Place:

Question Interface:

✔ Correct Answer / Solution View:

Click to View Verified Solution & Explanation

Explanation: ✅ Create a self-signed user account in the Azure AD tenant.

Reasoning: To initiate an internal admin takeover of an unmanaged tenant, you must first create a user account associated with the domain (e.g., admin@contoso.com) within that tenant by signing up for a service like Power BI.

✅ Sign in to the Microsoft 365 admin center.

Reasoning: Once a user account from the contoso.com domain exists within the unmanaged tenant, sign into the Microsoft 365 admin center (admin.microsoft.com) using that account to begin the administrative takeover process.

✅ Respond to the Become the admin message.

Reasoning: After signing in as a user to an unmanaged tenant, the Microsoft 365 admin center will typically display a prompt to "Become the admin," which initiates the guided process for taking ownership.

✅ Create a TXT record in the contoso.com DNS zone.

Reasoning: As part of the "Become the admin" process, you will be instructed to add a specific TXT record to your public DNS for contoso.com. This record serves as proof of domain ownership, allowing Microsoft to grant you Global Administrator privileges.

QUESTION 16 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that contains a user named User1 and the groups shown in the following table.

In the tenant, you create the groups shown in the following table.

Which members can you add to Group A and Group B? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **, Group1, and Group4 only **

Reasoning: Group A is an Assigned Security group. It can contain users (User1), other assigned security groups (Group1), and assigned Microsoft 365 groups (Group4). Dynamic groups (Group2, Group3) cannot be added as members.

✅ **, Group1, and Group4 only **

Reasoning: Group B is an Assigned Microsoft 365 group. It can contain users (User1), assigned security groups (Group1), and other assigned Microsoft 365 groups (Group4). Dynamic groups (Group2, Group3) cannot be added as members.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/groups-concept-architecture

QUESTION 17

Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have an Active Directory forest that syncs to an Azure Active Directory (Azure AD) tenant.

You discover that when a user account is disabled in Active Directory, the disabled user can still authenticate to Azure AD for up to 30 minutes.

You need to ensure that when a user account is disabled in Active Directory, the user account is immediately prevented from authenticating to Azure AD. Solution: You configure password writeback.

Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅ **No **

Reasoning: Password writeback enables Azure AD password changes to sync to on-premises AD. It does not affect the synchronization latency of user account status (enabled/disabled) from on-premises AD to Azure AD, nor does it immediately block authentication in Azure AD when an account is disabled on-premises. The 30-minute delay is due to Azure AD Connect’s delta sync cycle. ❌ Why the other choices are incorrect:

Option A is incorrect: Configuring password writeback does not address the propagation delay of the user’s account status from on-premises Active Directory to Azure AD. It is unrelated to immediately preventing authentication for a disabled user.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/hybrid/concept-azure-ad-connect-features#password-writeback

QUESTION 18

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have an Active Directory forest that syncs to an Azure Active Directory (Azure AD) tenant.

You discover that when a user account is disabled in Active Directory, the disabled user can still authenticate to Azure AD for up to 30 minutes.

You need to ensure that when a user account is disabled in Active Directory, the user account is immediately prevented from authenticating to Azure AD. Solution: You configure pass-through authentication.

Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅

Reasoning: Configuring pass-through authentication (PTA) ensures that Azure AD forwards authentication requests directly to the on-premises Active Directory. When a user account is disabled in AD, the on-premises domain controller immediately rejects the authentication attempt, thus preventing the user from authenticating to Azure AD without delay.

QUESTION 19

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have an Azure Active Directory (Azure AD) tenant that syncs to an Active Directory forest.

You discover that when a user account is disabled in Active Directory, the disabled user can still authenticate to Azure AD for up to 30 minutes.

You need to ensure that when a user account is disabled in Active Directory, the user account is immediately prevented from authenticating to Azure AD. Solution: You configure conditional access policies.

Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅ **No **

Reasoning: Conditional Access policies evaluate authentication requests based on the user’s current state in Azure AD. If a user is disabled on-premises, the accountEnabled attribute in Azure AD is updated only after Azure AD Connect synchronization. Conditional Access cannot override this sync delay to "immediately" block authentication if Azure AD still considers the account enabled.

QUESTION 20

You have an Azure Active Directory (Azure AD) tenant that contains the following objects.

A device named Device1

Users named User1, User2, User3, User4, and User5

Five groups named Group1, Group2, Group3, Group4, and Group5 The groups are configured as shown in the following table.

How many licenses are used if you assign the Microsoft 365 Enterprise E5 license to Group1?

B. 2
C. 3
D. 4

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: When a license is assigned to Group1:

User1 and User3 are direct members of Group1, so they consume 2 licenses.
Group2 is a Security group nested in Group1, but it is a Dynamic User group. Group-based licensing does not support nested dynamic groups, so User2 is not licensed via nesting.
Group4 is a Microsoft 365 group nested in Group1. Group-based licensing only supports nested security groups, so User4 is not licensed via nesting.
Thus, only User1 and User3 are licensed, totaling 2 licenses. ❌ Why the other choices are incorrect:

Option A is incorrect: User1 and User3 are direct members of the licensed group.
Option C is incorrect: This would imply User2 is licensed. However, Group2 is a nested dynamic group, which is not supported for license inheritance.
Option D is incorrect: This would imply User2 and User4 are both licensed. User2 is not licensed due to nested dynamic group limitation, and User4 is not licensed because Group4 is a Microsoft 365 group, not a security group.

QUESTION 21

You have an Azure Active Directory (Azure AD) tenant named contoso.com that contains an Azure AD enterprise application named App1. A contractor uses the credentials of user1@outlook.com.

You need to ensure that you can provide the contractor with access to App1. The contractor must be able to authenticate as user1@outlook.com. What should you do?

A. Run the New-AzADUser cmdlet.
B. Configure the External collaboration settings.
C. Add a WS-Fed identity provider.
D. Create a guest user account in contoso.com.

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅

Reasoning: To allow an external contractor to access Azure AD resources using their existing external credentials (like user1@outlook.com), you must invite them as a guest user. Creating a guest user account registers their external identity within your tenant, enabling them to authenticate and access assigned applications. ❌ Why the other choices are incorrect:

Option A is incorrect: Running New-AzADUser creates a member user in your tenant (e.g., user1@contoso.com), not an external guest authenticating with @outlook.com.
Option B is incorrect: Configuring External collaboration settings enables B2B functionality but doesn’t create the guest account or grant access itself. It’s a prerequisite, not the direct action.
Option C is incorrect: Adding a WS-Fed identity provider is for federating with specific enterprise IdPs, not required for Microsoft accounts like @outlook.com, which Azure AD B2B natively supports.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/external-identities/b2b-overview

QUESTION 22

Your network contains an Active Directory forest named contoso.com that is linked to an Azure Active Directory (Azure AD) tenant named contoso.com by using Azure AD Connect.

You need to prevent the synchronization of users who have the extensionAttribute15 attribute set to NoSync.

What should you do in Azure AD Connect?

A. Create an inbound synchronization rule for the Windows Azure Active Directory connector.
B. Configure a Full Import run profile.
C. Create an inbound synchronization rule for the Active Directory Domain Services connector.
D. Configure an Export run profile.

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: To prevent synchronization of specific on-premises Active Directory objects, you create an inbound synchronization rule for the Active Directory Domain Services (AD DS) connector. This rule applies filters to objects originating from on-premises AD before they enter the Metaverse, thus preventing their provisioning to Azure AD. ❌ Why the other choices are incorrect:

Option A is incorrect: An inbound rule for the Windows Azure Active Directory connector processes data from Azure AD to the Metaverse, not from on-premises AD to Azure AD.
Option B is incorrect: A Full Import run profile defines how data is imported, but it does not specify the filtering logic itself; that’s handled by synchronization rules.
Option D is incorrect: An Export run profile sends changes from the Metaverse to a connected directory (Azure AD). Filtering occurs before this stage via synchronization rules.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/hybrid/how-to-connect-sync-configure-filtering

QUESTION 23

Your network contains an on-premises Active Directory domain that syncs to an Azure Active Directory (Azure AD) tenant. The tenant contains the users shown in the following table.

All the users work remotely.

Azure AD Connect is configured in Azure AD as shown in the following exhibit.

Connectivity from the on-premises domain to the internet is lost. Which users can sign in to Azure AD?

A. User1 and User3 only
B. User1 only
C. User1, User2, and User3
D. User1 and User2 only

Click to View Verified Solution & Explanation

Correct Option: A

Explanation:

✅

Reasoning: User1 is a cloud-only user and User3 is a guest user; both authenticate directly with Azure AD, unaffected by on-premises connectivity loss. User2 uses Pass-through Authentication (PTA) as the enabled sign-in method. With on-premises connectivity lost, PTA agents cannot reach Active Directory to validate credentials, preventing User2’s sign-in. While PHS is enabled, PTA is the active authentication method. ❌ Why the other choices are incorrect:

Option B is incorrect: This excludes User3, who can sign in as a guest user independently of on-premises connectivity.
Option C is incorrect: This includes User2, who cannot sign in because Pass-through Authentication (PTA) relies on the now-lost on-premises connectivity to validate credentials.
Option D is incorrect: This excludes User3 and includes User2, both of which are incorrect based on the reasons above.

QUESTION 24

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have an Active Directory forest that syncs to an Azure Active Directory (Azure AD) tenant.

You discover that when a user account is disabled in Active Directory, the disabled user can still authenticate to Azure AD for up to 30 minutes.

You need to ensure that when a user account is disabled in Active Directory, the user account is immediately prevented from authenticating to Azure AD. Solution: You configure Azure AD Password Protection.

Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: Configuring Azure AD Password Protection does not address the synchronization delay of disabled user accounts from Active Directory to Azure AD. Its purpose is to enforce strong password policies and prevent the use of weak or commonly used passwords, not to manage account lifecycle synchronization or immediate session revocation upon on-premises disablement. ❌ Why the other choices are incorrect:

Option A is incorrect: Azure AD Password Protection prevents users from creating weak passwords. It does not impact the synchronization frequency of account status or immediately revoke sessions when an account is disabled in on-premises Active Directory.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/authentication/concept-password-protection

QUESTION 25 [HOT_AREA]

Your network contains an on-premises Active Directory domain named contoso.com. The domain contains the objects shown in the following table.

You install Azure AD Connect. You configure the Domain and OU filtering settings as shown in the Domain and OU Filtering exhibit. (Click the Domain and OU Filtering tab.)

You configure the Filter users and devices settings as shown in the Filter Users and Devices exhibit. (Click the Filter Users and Devices tab.)

For each of the following statements, select Yes if the statement is true. Otherwise, select No.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ User1 syncs to Azure AD. – Yes

Reasoning: User1 is in OU1, which is selected for synchronization. User1 is also a direct member of Group1, which is specified in the "Filter users and devices" setting.

✅ User2 syncs to Azure AD. – No

Reasoning: User2 is in OU1, selected for sync, but is not a member of Group1. The "Filter users and devices" setting synchronizes only members of Group1, so User2 is excluded.

✅ Group2 syncs to Azure AD. – Yes

Reasoning: Group2 is located in OU1, which is selected for synchronization. The "Filter users and devices" setting applies to members of Group1 (users/devices), not to the synchronization of security groups themselves.

QUESTION 26

You have an Azure Active Directory (Azure AD) tenant named contoso.com.

You need to ensure that Azure AD External Identities pricing is based on monthly active users (MAU). What should you configure?

A. a user flow
B. the terms of use
C. a linked subscription
D. an access review

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: To enable Monthly Active User (MAU) pricing for Azure AD External Identities, the Azure AD tenant must be linked to an Azure subscription. This linkage allows Azure to track and bill usage based on MAU against that subscription. ❌ Why the other choices are incorrect:

Option A is incorrect: A user flow defines the sign-up, sign-in, or profile editing experience for external users; it does not determine the pricing model.
Option B is incorrect: Terms of use are legal agreements presented to users; they are unrelated to how Azure AD External Identities are priced.
Option D is incorrect: An access review is a security feature to periodically review user access to resources; it has no bearing on the billing model.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/external-identities/billing

QUESTION 27 [DRAG_DROP]

You have a new Microsoft 365 tenant that uses a domain name of contoso.onmicrosoft.com. You register the name contoso.com with a domain registrar.

You need to use contoso.com as the default domain name for new Microsoft 365 users.

Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

Select and Place:

Question Interface:

✔ Correct Answer / Solution View:

Click to View Verified Solution & Explanation

Explanation: ✅ **a custom domain name of contoso.com. **

Reasoning: The first step is to register your custom domain, contoso.com, within the Microsoft 365 admin center, initiating the process.

✅ **a new TXT record in DNS. **

Reasoning: To prove ownership of contoso.com, Microsoft 365 provides a specific TXT record. This record must be created at your domain registrar.

✅ **verify the domain name. **

Reasoning: After creating the TXT record, you instruct Microsoft 365 to check the public DNS for the record, confirming domain ownership.

✅ **the domain to primary. **

Reasoning: Once contoso.com is verified, you can set it as the primary domain, making it the default for new user accounts and services.

Reference: https://learn.microsoft.com/en-us/microsoft-365/admin/setup/add-domain?view=o365-worldwide

QUESTION 28 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that has an Azure Active Directory Premium Plan 2 license. The tenant contains the users shown in the following table.

You have the Device Settings shown in the following exhibit.

User1 has the devices shown in the following table.

For each of the following statements, select Yes if the statement is true. Otherwise, select No.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: The device settings show "Users may join devices to Azure AD" is "Selected" with "No member selected," meaning no users can self-service join devices. User1 already has 4 devices (1 AAD joined, 3 AAD registered). The "Maximum number of devices per user" is 5. Even if they could join, only 1 more device slot is available. Therefore, User1 cannot join four additional devices.

✅

Reasoning: Admin1 holds the "Cloud device administrator" role. This role specifically grants permissions to manage device settings in Azure AD, which includes the setting "Devices to be Azure AD joined or Azure AD registered require Multi-Factor Authentication." Thus, Admin1 can change this setting to Yes.

✅

Reasoning: Admin2 is a "Device administrator" in Azure AD. Device3 is "Azure AD registered." The setting for "Additional local administrators on all Azure AD joined devices" only applies to Azure AD joined devices. The Azure AD "Device administrator" role does not grant local administrator privileges on Azure AD registered devices.

Case Study: Contoso, Ltd

The contoso.com Active Directory domain contains the relevant users shown in the following table.

Contoso also includes a marketing department that has users in each office.

Existing Environment. Microsoft 365/Azure Environment

Contoso has an Azure AD tenant named contoso.com that has the following associated licenses:

• Microsoft Office 365 Enterprise E5
• Enterprise Mobility + Security E5
• Windows 10 Enterprise E3
• Project Plan 3

Azure AD Connect is configured between Azure AD and Active Directory Domain Services (AD DS). Only the Contoso_Resources OU is synced.

Helpdesk administrators routinely use the Microsoft 365 admin center to manage user settings.

User administrators currently use the Microsoft 365 admin center to manually assign licenses. All users have all licenses assigned besides the following exceptions:

• The users in the London office have the Microsoft 365 Phone System license unassigned.
• The users in the Seattle office have the Yammer Enterprise license unassigned.

Security defaults are disabled for contoso.com.

Contoso uses Azure AD Privileged Identity Management (PIM) to protect administrative roles.

Existing Environment. Problem Statements
Contoso identifies the following issues:

Contoso plans to implement the following changes:

Contoso plans to acquire a company named A. Datum Corporation. One hundred new A. Datum users will be created in an Active Directory OU named Adatum. The users will be located in London and Seattle.

Technical Requirements
Contoso identifies the following technical requirements:

QUESTION 29 [HOT_AREA]

Scenario: Contoso, Ltd

You need to meet the technical requirements for the probability that user identities were compromised.

What should the users do first, and what should you configure? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation:

The users must first: Register for self-service password reset (SSPR).

To meet the requirement of forcing users to change their password when their identity is likely compromised, the automated remediation process leverages Self-Service Password Reset (SSPR). Users must register for SSPR beforehand so they can securely verify their identity using pre-configured authentication methods and reset their own password without administrator intervention.

You must configure: A user risk policy

Azure AD Identity Protection uses risk policies to respond to threats. The requirement specifies acting on the ‘probability that the users’ identity was compromised,’ which directly aligns with the function of a user risk policy. This policy assesses the overall risk to a user’s identity over time and can be configured to automatically enforce a password change when the risk level becomes high.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/identity-protection/howto-identity-protection-configure-risk-policies

Case Study: Litware, Inc.

Instructions

To start the case study

Overview

Litware, Inc. is a pharmaceutical company that has a subsidiary named Fabrikam, Inc.

Litware has offices in Boston and Seattle, but has employees located across the United States. Employees connect remotely to either office by using a VPN connection.

Existing Environment

Identity Environment

Litware.com contains a user named User1 who oversees all application development. Litware implements Azure AD Application Proxy.

Fabrikam has an Azure AD tenant named fabrikam.com. The users at Fabrikam access the resources in litware.com by using guest accounts in the litware.com tenant.

Cloud Environment

All the users at Litware have Microsoft 365 Enterprise E5 licenses. All the built-in anomaly detection policies in Microsoft Cloud App Security are enabled.

On-premises Environment

The on-premises network contains the servers shown in the following table.

Requirements

Delegation Requirements

Litware identifies the following delegation requirements:

Delegate the management of privileged roles by using Azure AD Privileged Identity Management (PIM). Prevent nonprivileged users from registering applications in the litware.com Azure AD tenant.

Use custom programs for Identity Governance.

Ensure that User1 can create enterprise applications in Azure AD. Use the principle of least privilege.

Licensing Requirements

Management Requirements

Litware wants to create a group named LWGroup1 that will contain all the Azure AD user accounts for Litware but exclude all the Azure AD guest accounts.

Authentication Requirements

Litware identifies the following authentication requirements:

Implement multi-factor authentication (MFA) for all Litware users by using conditional access policies. Exempt users from using MFA to authenticate to Azure AD from the Boston office of Litware.

Implement a banned password list for the litware.com forest. Enforce MFA when accessing on-premises applications.

Automatically detect and remediate externally leaked credentials.

Access Requirements

Litware identifies the following access requirements:

Control privileged access to applications by using access reviews in Azure AD.

Monitoring Requirements

Litware wants to use the Fusion rule in Azure Sentinel to detect multi-staged attacks that include a combination of suspicious Azure AD sign-ins followed by anomalous Microsoft Office 365 activity.

QUESTION 30

Scenario: Litware, Inc.

You need to configure the MFA settings for users who connect from the Boston office. The solution must meet the authentication requirements and the access requirements.

What should you include in the configuration?

A. named locations that have a private IP address range
B. named locations that have a public IP address range
C. trusted IPs that have a public IP address range
D. trusted IPs that have a private IP address range

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: To exempt users from MFA when connecting from a specific office, Conditional Access policies utilize "Named locations." These locations must be configured with the public IP address range of the Boston office, allowing Azure AD to identify and apply policy exemptions for connections originating from that trusted network. ❌ Why the other choices are incorrect:

Option A is incorrect: Private IP address ranges are internal and cannot be used by Azure AD Conditional Access to identify external connections originating from a specific office.
Option C is incorrect: "Trusted IPs" are primarily associated with legacy per-user MFA settings and not the modern "Named locations" construct used within Conditional Access policies for network-based exemptions.
Option D is incorrect: Private IP ranges are unsuitable for external identification, and "Trusted IPs" is not the current or recommended Conditional Access mechanism for this scenario.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/conditional-access/location-condition

General Practice Questions

QUESTION 31 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that has Security defaults disabled. You are creating a conditional access policy as shown in the following exhibit.

Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ Grant settings

Reasoning: To enforce multi-factor authentication (MFA) within a Conditional Access policy, the "Grant" controls are used. This section dictates what controls are required (e.g., MFA, compliant device) for access to be granted.

✅ Sessions settings

Reasoning: To control how often a user is prompted for authentication (e.g., every eight hours), the "Session" controls are configured. This setting specifically manages sign-in frequency or persistent browser sessions.

QUESTION 32

You have an Azure Active Directory (Azure AD) tenant that contains a user named SecAdmin1. SecAdmin1 is assigned the Security administrator role. SecAdmin1 reports that she cannot reset passwords from the Azure AD Identity Protection portal.

You need to ensure that SecAdmin1 can manage passwords and invalidate sessions on behalf of non-administrative users. The solution must use the principle of least privilege.

Which role should you assign to SecAdmin1?

A. Authentication administrator
B. Helpdesk administrator
C. Privileged authentication administrator
D. Security operator

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅ **Authentication administrator **

Reasoning: The Authentication administrator role enables SecAdmin1 to reset passwords for any user and invalidate all user refresh tokens and MFA sessions. This role provides the necessary comprehensive authentication management, including capabilities often performed from Azure AD Identity Protection, while adhering to least privilege compared to higher-level admin roles. ❌ Why the other choices are incorrect:

Option B is incorrect: The Helpdesk administrator can reset passwords and invalidate refresh tokens for non-administrative users, but it cannot revoke MFA sessions, which is a critical part of comprehensive session invalidation.
Option C is incorrect: Privileged authentication administrator grants excessive privileges, including managing global administrator credentials, which violates the principle of least privilege for managing non-administrative users.
Option D is incorrect: The Security operator role is for monitoring and managing security posture and does not include permissions to reset passwords or invalidate user sessions.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/roles/permissions-reference

QUESTION 33

You configure Azure Active Directory (Azure AD) Password Protection as shown in the exhibit. (Click the Exhibit tab.)

You are evaluating the following passwords:

Pr0jectlitw@re
T@ilw1nd
C0nt0s0

Which passwords will be blocked?

A. Pr0jectlitw@re and T@ilw1nd only
B. C0nt0s0 only
C. C0nt0s0, Pr0jectlitw@re, and T@ilw1nd
D. C0nt0s0 and T@ilw1nd only
E. C0nt0s0 and Pr0jectlitw@re only

Click to View Verified Solution & Explanation

Correct Option: C

Explanation:

✅

Reasoning: Azure AD Password Protection with custom banned lists applies fuzzy matching, including common character substitutions (e.g., ‘0’ for ‘o’, ‘@’ for ‘a’, ‘1’ for ‘l’) and case insensitivity. All three passwords (C0nt0s0, Pr0jectlitw@re, T@ilw1nd) contain terms from the custom banned list (‘Contoso’, ‘project’, ‘Litware’, ‘Tailwind’) with these substitutions, so they will all be blocked. ❌ Why the other choices are incorrect:

Option A is incorrect: C0nt0s0 is also blocked because ‘C0nt0s0’ is a common substitution for ‘Contoso’, which is on the banned list.
Option B is incorrect: Pr0jectlitw@re and T@ilw1nd are also blocked due to containing banned terms with common character substitutions.
Option D is incorrect: Pr0jectlitw@re is also blocked as it contains ‘project’ and ‘Litware’ from the banned list via character substitutions.
Option E is incorrect: T@ilw1nd is also blocked because ‘T@ilw1nd’ is a common substitution for ‘Tailwind’, which is on the banned list.

QUESTION 34

You have a Microsoft 365 tenant.

All users have mobile phones and laptops.

The users frequently work from remote locations that do not have Wi-Fi access or mobile phone connectivity. While working from the remote locations, the users connect their laptop to a wired network that has internet access.

You plan to implement multi-factor authentication (MFA).

Which MFA authentication method can the users use from the remote location?

A. a verification code from the Microsoft Authenticator app
B. security questions
C. voice
D. SMS

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅ **a verification code from the Microsoft Authenticator app **

Reasoning: The Microsoft Authenticator app can generate Time-based One-Time Passwords (TOTP) offline. The mobile phone does not require Wi-Fi or mobile connectivity to generate these codes. Users can enter the generated code into their laptop, which has internet access via the wired network. ❌ Why the other choices are incorrect:

Option B is incorrect: Security questions are generally used for self-service password reset and are not considered a strong primary MFA method for Azure AD authentication.
Option C is incorrect: Voice call MFA requires mobile phone connectivity (cellular signal), which is explicitly stated as unavailable in the remote locations.
Option D is incorrect: SMS-based MFA requires mobile phone connectivity (cellular signal) to receive the message, which is unavailable in the specified remote locations.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/authentication/concept-authentication-methods#microsoft-authenticator

QUESTION 35

You configure a new Microsoft 365 tenant to use a default domain name of contoso.com.

You need to ensure that you can control access to Microsoft 365 resources by using conditional access policies. What should you do first?

A. Disable the User consent settings.
B. Disable Security defaults.
C. Configure a multi-factor authentication (MFA) registration policy.
D. Configure password protection for Windows Server Active Directory.

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: Security defaults are enabled by default in new Microsoft 365 tenants. They enforce basic security policies but block the use of granular Conditional Access policies. To implement custom Conditional Access policies, Security defaults must be disabled first. ❌ Why the other choices are incorrect:

Option A is incorrect: Disabling user consent settings impacts application registration and consent flow, not the fundamental ability to configure and apply Conditional Access policies.
Option C is incorrect: Configuring an MFA registration policy is a step within an identity security strategy, often leveraging Conditional Access. However, you cannot implement Conditional Access policies if Security defaults are still active.
Option D is incorrect: Configuring password protection for Windows Server Active Directory addresses on-premises password policies. This is irrelevant for enabling Conditional Access in a new, potentially cloud-only Microsoft 365 tenant.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/fundamentals/concept-security-defaults

QUESTION 36

Your company has a Microsoft 365 tenant.

The company has a call center that contains 300 users. In the call center, the users share desktop computers and might use a different computer every day. The call center computers are NOT configured for biometric identification.

The users are prohibited from having a mobile phone in the call center.

You need to require multi-factor authentication (MFA) for the call center users when they access Microsoft 365 services. What should you include in the solution?

A. a named network location
B. the Microsoft Authenticator app
C. Windows Hello for Business authentication
D. FIDO2 tokens

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅

Reasoning: FIDO2 security tokens are portable physical hardware keys providing strong, phishing-resistant MFA. They meet all requirements as they do not require mobile phones (prohibited) or biometric capabilities on the shared computers (not configured). Users carry their token for authentication on any shared device. ❌ Why the other choices are incorrect:

Option A is incorrect: A named network location defines trusted perimeters, typically used to exclude MFA, not to provide an MFA method itself.
Option B is incorrect: The Microsoft Authenticator app requires a mobile phone, which is explicitly prohibited for call center users in the scenario.
Option C is incorrect: Windows Hello for Business relies on biometrics or a PIN tied to a specific device. The scenario states computers lack biometric identification and are shared daily, making this unsuitable as a portable MFA solution for cloud services.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/authentication/concept-authentication-fido2-security-key

QUESTION 37

You have an Azure Active Directory (Azure AD) tenant named contoso.com.

All users who run applications registered in Azure AD are subject to conditional access policies. You need to prevent the users from using legacy authentication.

What should you include in the conditional access policies to filter out legacy authentication attempts?

A. a cloud apps or actions condition
B. a user risk condition
C. a client apps condition
D. a sign-in risk condition

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: The Conditional Access "client apps" condition allows administrators to specify which client applications the policy applies to. By configuring this condition to block "Other clients," you effectively prevent legacy authentication protocols (like POP, IMAP, SMTP, and older Office clients) from accessing applications. ❌ Why the other choices are incorrect:

Option A is incorrect: The "cloud apps or actions" condition defines which specific cloud applications or user actions the policy protects, not the type of client or authentication method used.
Option B is incorrect: The "user risk" condition, part of Azure AD Identity Protection, evaluates the likelihood of a user’s account being compromised. It does not differentiate between modern or legacy authentication protocols.
Option D is incorrect: The "sign-in risk" condition, also from Azure AD Identity Protection, assesses the risk level of an individual sign-in attempt. It’s about suspicious activity, not the client’s authentication protocol.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/conditional-access/howto-conditional-access-session-block-legacy

QUESTION 38

You have an Azure Active Directory (Azure AD) tenant. You open the risk detections report.

Which risk detection type is classified as a user risk?

A. impossible travel
B. anonymous IP address
C. atypical travel
D. leaked credentials

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅

Reasoning: Leaked credentials indicate a user’s password has been found compromised, directly affecting the user account. This detection is classified as a user risk within Azure AD Identity Protection. ❌ Why the other choices are incorrect:

Option A is incorrect: Impossible travel is classified as a sign-in risk, indicating a suspicious sign-in event from geographically distant locations in a short time.
Option B is incorrect: Anonymous IP address is classified as a sign-in risk, detecting access from anonymizer services used to hide identity.
Option C is incorrect: Atypical travel (or sign-ins from atypical locations) is a sign-in risk, flagging unusual sign-in patterns for a user.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/identity-protection/concept-identity-protection-security-overview#risk-detections

QUESTION 39

You have a Microsoft 365 tenant.

All users have computers that run Windows 10. Most computers are company-owned and joined to Azure Active Directory (Azure AD). Some computers are user- owned and are only registered in Azure AD.

You need to prevent users who connect to Microsoft SharePoint Online on their user-owned computer from downloading or syncing files. Other users must NOT

be restricted.

Which policy type should you create?

A. a Microsoft Cloud App Security activity policy that has Microsoft Office 365 governance actions configured
B. an Azure AD conditional access policy that has session controls configured
C. an Azure AD conditional access policy that has client apps conditions configured
D. a Microsoft Cloud App Security app discovery policy that has governance actions configured

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: An Azure AD Conditional Access policy can target users accessing SharePoint Online from "Azure AD registered" (user-owned) devices. Session controls, specifically "Use Conditional Access App Control," enable real-time restriction of actions like downloading or syncing files during the session, fulfilling the requirement to prevent downloads on user-owned computers while not restricting others. ❌ Why the other choices are incorrect:

Option A is incorrect: While MCAS activity policies can govern actions, they are typically applied after initial access. Conditional Access is the primary mechanism to enforce policy based on device state before or during the session, often leveraging MCAS for session controls.
Option C is incorrect: Client apps conditions target the type of application used (e.g., browser, desktop app), not primarily the device management state or the granular session controls required to prevent file download/sync from a specific device type.
Option D is incorrect: MCAS app discovery policies identify shadow IT. They are not designed to enforce real-time access or session restrictions on sanctioned cloud applications like SharePoint Online based on device state.

QUESTION 40

You have an Active Directory domain that syncs to an Azure Active Directory (Azure AD) tenant.

The on-premises network contains a VPN server that authenticates to the on-premises Active Directory domain. The VPN server does NOT support Azure Multi- Factor Authentication (MFA).

You need to recommend a solution to provide Azure MFA for VPN connections. What should you include in the recommendation?

A. Azure AD Application Proxy
B. an Azure AD Password Protection proxy
C. Network Policy Server (NPS)
D. a pass-through authentication proxy.

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: Network Policy Server (NPS) with the Azure MFA NPS extension is the recommended solution. The VPN server, configured as a RADIUS client, sends authentication requests to the on-premises NPS. The NPS, with the extension, forwards these requests to Azure AD for MFA before authenticating against Active Directory. ❌ Why the other choices are incorrect:

Option A is incorrect: Azure AD Application Proxy provides secure remote access for web applications, not network-level VPN authentication.
Option B is incorrect: An Azure AD Password Protection proxy extends password policies to on-premises AD, unrelated to providing MFA for VPNs.
Option D is incorrect: A pass-through authentication proxy (PTA) is for primary authentication to Azure AD services against on-premises AD, not for integrating MFA with an on-premises VPN.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/authentication/howto-mfa-nps-extension

QUESTION 41

You have a Microsoft 365 tenant.

The Azure Active Directory (Azure AD) tenant is configured to sync with an on-premises Active Directory domain. The domain contains the servers shown in the following table.

The domain controllers are prevented from communicating to the internet. You implement Azure AD Password Protection on Server1 and Server2. You deploy a new server named Server4 that runs Windows Server 2019.

You need to ensure that Azure AD Password Protection will continue to work if a single server fails. What should you implement on Server4?

A. Azure AD Connect
B. Azure AD Application Proxy
C. Password Change Notification Service (PCNS)
D. the Azure AD Password Protection proxy service

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅ **the Azure AD Password Protection proxy service **

Reasoning: The Azure AD Password Protection DC agent (on Server1 and Server2) requires the proxy service to communicate with Azure AD when domain controllers are internet-isolated. To ensure continued operation if a single proxy server fails, deploying a redundant Azure AD Password Protection proxy service on Server4 is necessary for high availability. ❌ Why the other choices are incorrect:

Option A is incorrect: Azure AD Connect (on Server3) handles directory synchronization. Implementing another Azure AD Connect server would provide sync redundancy but doesn’t impact Azure AD Password Protection’s real-time password validation when DCs are internet-isolated.
Option B is incorrect: Azure AD Application Proxy provides secure remote access to on-premises web applications and is unrelated to Azure AD Password Protection.
Option C is incorrect: Password Change Notification Service (PCNS) is used for password synchronization to other systems (e.g., via MIM) and is not part of the Azure AD Password Protection service.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/authentication/concept-password-protection-architecture

QUESTION 42 [DRAG_DROP]

You have a Microsoft 365 E5 tenant. You purchase a cloud app named App1.

You need to enable real-time session-level monitoring of App1 by using Microsoft Cloud App Security.

In which order should you perform the actions? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

Select and Place:

Question Interface:

✔ Correct Answer / Solution View:

Click to View Verified Solution & Explanation

Explanation: ✅ **App1 in Azure Active Directory (Azure AD) **

Reasoning: The application must first be integrated with Azure AD, usually for single sign-on, to enable Azure AD Conditional Access to target and manage access to it.

✅ **a conditional access policy that has session controls configured **

Reasoning: A Conditional Access policy with "Use Conditional Access App Control" selected is necessary to redirect user sessions to Microsoft Cloud App Security (now Defender for Cloud Apps) for real-time monitoring and control.

✅ **Microsoft Cloud App Security, create a session policy **

Reasoning: After Conditional Access redirects a session, a session policy in Cloud App Security defines the specific actions, such as monitoring, blocking activities, or enforcing downloads, to be applied during the session.

✅ **Microsoft Cloud App Security, modify the Connected apps settings for App1 **

Reasoning: Once the app is integrated and policies are in place, modifying "Connected apps" settings in Cloud App Security ensures proper configuration and fine-tuning for session control, especially for custom or non-standard applications.

QUESTION 43

You have a Microsoft 365 tenant.

All users have mobile phones and laptops.

You plan to implement multi-factor authentication (MFA).

Which MFA authentication method can the users use from the remote location?

A. a notification through the Microsoft Authenticator app
B. an app password
C. Windows Hello for Business

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: Windows Hello for Business (WHfB) provides strong, two-factor authentication using a PIN or biometric combined with a key stored on the device’s TPM. It satisfies MFA requirements locally on the laptop, which has wired internet access, without needing the mobile phone’s connectivity for a separate second factor. ❌ Why the other choices are incorrect:

Option A is incorrect: Microsoft Authenticator app notifications require the mobile phone to have an active internet connection (Wi-Fi or cellular data) to receive push prompts. The scenario states the remote locations lack "Wi-Fi access or mobile phone connectivity" for the phone.
Option B is incorrect: App passwords are a mechanism for legacy applications that do not support modern authentication to access resources when MFA is enabled; they bypass real-time MFA, rather than being an MFA method themselves.

Reference: https://learn.microsoft.com/en-us/windows/security/identity-protection/hello-for-business/hello-overview

QUESTION 44

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have a Microsoft 365 tenant.

All users must use the Microsoft Authenticator app for multi-factor authentication (MFA) when accessing Microsoft 365 services. Some users report that they received an MFA prompt on their Microsoft Authenticator app without initiating a sign-in request.

You need to block the users automatically when they report an MFA request that they did not initiate. Solution: From the Azure portal, you configure the Notifications settings for multi-factor authentication (MFA). Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅ **No **

Reasoning: Configuring "Notifications settings for multi-factor authentication (MFA)" allows specifying email addresses for MFA-related alerts to administrators. It does not enable the user-initiated reporting of suspicious activity (e.g., "Report suspicious activity" or "Fraud alert") or the automatic blocking of users based on such reports. The fraud reporting and blocking mechanism is a distinct configuration within MFA settings.

QUESTION 45

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have a Microsoft 365 tenant.

You need to block the users automatically when they report an MFA request that they did not initiate.

Solution: From the Azure portal, you configure the Account lockout settings for multi-factor authentication (MFA). Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: B

Explanation:

❌ Option B (Incorrect)
*

Reasoning: Configuring "Account lockout settings for multi-factor authentication (MFA)" primarily addresses thresholds for failed MFA attempts. It does not automatically block users when they report an unsolicited MFA request from their Microsoft Authenticator app. To achieve that, you must enable and configure the MFA fraud alert feature within Azure AD Identity Protection, combined with a user risk policy that triggers an automatic block upon fraud reporting.

QUESTION 46

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have a Microsoft 365 tenant.

You need to block the users automatically when they report an MFA request that they did not initiate.

Solution: From the Azure portal, you configure the Block/unblock users settings for multi-factor authentication (MFA). Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: The "Block/unblock users" setting for MFA is a manual administrative control. An administrator must explicitly block a user through the Azure portal. It does not provide an automatic mechanism to block users based on them reporting uninitiated MFA requests. ❌ Why the other choices are incorrect:

Option A is incorrect: This setting requires an administrator to take action, failing to meet the requirement for automatic blocking.

QUESTION 47 [HOT_AREA]

You have a Microsoft 365 tenant.

You need to identify users who have leaked credentials. The solution must meet the following requirements:

Identify sign-ins by users who are suspected of having leaked credentials. Flag the sign-ins as a high-risk event.

Immediately enforce a control to mitigate the risk, while still allowing the user to access applications.

What should you use? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **Azure Active Directory (Azure AD) Identity Protection **

Reasoning: Azure AD Identity Protection is the service designed to detect identity-based risks, including leaked credentials, and automatically flag sign-ins as high-risk events.

✅ **Sign-in risk **

Reasoning: To immediately enforce controls based on suspicious sign-ins, Conditional Access policies are triggered by "Sign-in risk" detected by Identity Protection, fulfilling the "flag the sign-ins" requirement.

✅ **Grant access but require password change **

Reasoning: For leaked credentials, forcing a password change is the direct mitigation, while "Grant access" ensures the user can still access applications after remediation.

QUESTION 48 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that contains the users shown in the following table.

You plan to implement Azure AD Identity Protection.

Which users can configure the user risk policy, and which users can view the risky users report? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: To configure the user risk policy in Azure AD Identity Protection, the user requires a role like Global Administrator, Security Administrator, or Identity Protection Administrator. User3, as a Security Administrator, possesses this permission. A Conditional Access Administrator (User1) can utilize Identity Protection risk in Conditional Access policies but cannot configure the core user risk policy settings directly.

✅

Reasoning: To view Identity Protection reports, including the risky users report, roles like Global Administrator, Security Administrator, Security Operator, Security Reader, or Global Reader are required. Both User3 (Security Administrator) and User4 (Security Operator) have this permission. A Conditional Access Administrator (User1) cannot view Identity Protection reports.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/identity-protection/overview-identity-protection#required-roles

QUESTION 49 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that contains an administrative unit named Department1. Department1 has the users shown in the Users exhibit. (Click the Users tab.)

Department1 has the groups shown in the Groups exhibit. (Click the Groups tab.)

Department1 has the user administrator assignments shown in the Assignments exhibit. (Click the Assignments tab.)

The members of Group2 are shown in the Group2 exhibit. (Click the Group2 tab.)

For each of the following statements, select Yes if the statement is true. Otherwise, select No.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: Admin1 holds the User Administrator role scoped to Department1 Administrative Unit. This role grants management capabilities only for users directly within that administrative unit. The "Users" exhibit shows User1 and User2 are directly in Department1 AU, but User3 and User4 are only members of Group2 (which is in the AU), not directly users of the AU. Therefore, Admin1 cannot reset their passwords.

✅

Reasoning: Admin1 is a User Administrator scoped to Department1 Administrative Unit. This scope allows Admin1 to manage both users and groups within that specific AU. User1 is a user directly within Department1 AU, and Group2 is a group directly within Department1 AU. Thus, Admin1 can add User1 to Group2.

✅

Reasoning: Admin2 is assigned the User Administrator role with a Directory scope, meaning tenant-wide permissions. A directory-scoped User Administrator can perform management actions, including password resets, for any user object across the entire Azure AD tenant. User1 is a user within the tenant. Therefore, Admin2 can reset User1’s password.

QUESTION 50

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

You have a Microsoft 365 tenant.

You need to block the users automatically when they report an MFA request that they did not initiate. Solution: From the Azure portal, you configure the Fraud alert settings for multi-factor authentication (MFA). Does this meet the goal?

A. Yes
B. No

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅

Reasoning: Configuring MFA fraud alerts enables users to report uninitiated MFA prompts directly. Upon a fraud report, the user’s account is automatically set to "Fraud reported" and blocked from further sign-ins, meeting the goal of automatic blocking.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/authentication/howto-mfa-report-fraud

Case Study: Contoso, Ltd

The contoso.com Active Directory domain contains the relevant users shown in the following table.

Contoso also includes a marketing department that has users in each office.

Existing Environment. Microsoft 365/Azure Environment

Contoso has an Azure AD tenant named contoso.com that has the following associated licenses:

• Microsoft Office 365 Enterprise E5
• Enterprise Mobility + Security E5
• Windows 10 Enterprise E3
• Project Plan 3

Azure AD Connect is configured between Azure AD and Active Directory Domain Services (AD DS). Only the Contoso_Resources OU is synced.

Helpdesk administrators routinely use the Microsoft 365 admin center to manage user settings.

User administrators currently use the Microsoft 365 admin center to manually assign licenses. All users have all licenses assigned besides the following exceptions:

• The users in the London office have the Microsoft 365 Phone System license unassigned.
• The users in the Seattle office have the Yammer Enterprise license unassigned.

Security defaults are disabled for contoso.com.

Contoso uses Azure AD Privileged Identity Management (PIM) to protect administrative roles.

Existing Environment. Problem Statements
Contoso identifies the following issues:

Contoso plans to implement the following changes:

Contoso plans to acquire a company named A. Datum Corporation. One hundred new A. Datum users will be created in an Active Directory OU named Adatum. The users will be located in London and Seattle.

Technical Requirements
Contoso identifies the following technical requirements:

QUESTION 51

Scenario: Contoso, Ltd

You need to meet the planned changes and technical requirements for App1. What should you implement?

A. a policy set in Microsoft Endpoint Manager
B. an app configuration policy in Microsoft Endpoint Manager
C. an app registration in Azure AD
D. Azure AD Application Proxy

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: To allow a custom Azure web app (App1) to authenticate with Azure AD and define its redirect URI, you must perform an app registration in Azure AD. This creates an identity for the application within the tenant. ❌ Why the other choices are incorrect:

Option A is incorrect: Microsoft Endpoint Manager policies are for device management, app protection, or device configuration, not for registering applications with Azure AD for authentication.
Option B is incorrect: An app configuration policy in Microsoft Endpoint Manager manages settings within a deployed mobile app, not the initial registration of a web application with Azure AD.
Option D is incorrect: Azure AD Application Proxy publishes on-premises web apps for remote access. App1 is an "Azure web app" accessible from the internet, indicating it’s cloud-native and doesn’t require proxying for access or registration.

Case Study: Litware, Inc.

Instructions

To start the case study

Overview

Litware, Inc. is a pharmaceutical company that has a subsidiary named Fabrikam, Inc.

Litware has offices in Boston and Seattle, but has employees located across the United States. Employees connect remotely to either office by using a VPN connection.

Existing Environment

Identity Environment

Litware.com contains a user named User1 who oversees all application development. Litware implements Azure AD Application Proxy.

Fabrikam has an Azure AD tenant named fabrikam.com. The users at Fabrikam access the resources in litware.com by using guest accounts in the litware.com tenant.

Cloud Environment

All the users at Litware have Microsoft 365 Enterprise E5 licenses. All the built-in anomaly detection policies in Microsoft Cloud App Security are enabled.

On-premises Environment

The on-premises network contains the servers shown in the following table.

Requirements

Delegation Requirements

Litware identifies the following delegation requirements:

Delegate the management of privileged roles by using Azure AD Privileged Identity Management (PIM). Prevent nonprivileged users from registering applications in the litware.com Azure AD tenant.

Use custom programs for Identity Governance.

Ensure that User1 can create enterprise applications in Azure AD. Use the principle of least privilege.

Licensing Requirements

Management Requirements

Litware wants to create a group named LWGroup1 that will contain all the Azure AD user accounts for Litware but exclude all the Azure AD guest accounts.

Authentication Requirements

Litware identifies the following authentication requirements:

Implement multi-factor authentication (MFA) for all Litware users by using conditional access policies. Exempt users from using MFA to authenticate to Azure AD from the Boston office of Litware.

Implement a banned password list for the litware.com forest. Enforce MFA when accessing on-premises applications.

Automatically detect and remediate externally leaked credentials.

Access Requirements

Litware identifies the following access requirements:

Control privileged access to applications by using access reviews in Azure AD.

Monitoring Requirements

Litware wants to use the Fusion rule in Azure Sentinel to detect multi-staged attacks that include a combination of suspicious Azure AD sign-ins followed by anomalous Microsoft Office 365 activity.

QUESTION 52 [HOT_AREA]

Scenario: Litware, Inc.

You need to implement on-premises application and SharePoint Online restrictions to meet the authentication requirements and the access requirements. What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ Publish the applications by using Azure AD Application Proxy.

Reasoning: To enforce Azure AD authentication requirements, like MFA, on on-premises applications, they must be published through Azure AD Application Proxy. This integrates them with Azure AD Conditional Access policies.

✅ Configure app-enforced restrictions.

Reasoning: The requirement is to implement session controls for SharePoint Online. App-enforced restrictions, configured via Conditional Access, provide these session controls to manage access from unmanaged devices, preventing actions like downloading.

General Practice Questions

QUESTION 53 [HOT_AREA]

You need to configure app registration in Azure AD to meet the delegation requirements. What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **users to register application **

Reasoning: Enabling this tenant-level setting allows all users in Azure AD to register applications, directly addressing broad "app registration" delegation requirements.

✅ **developer **

Reasoning: Assigning the "Application developer" role to User1 grants the necessary permissions to create, update, and manage application registrations and service principals, fulfilling specific delegation needs for an individual.

QUESTION 54 [HOT_AREA]

You have a Microsoft 365 tenant and an Active Directory domain named adatum.com. You deploy Azure AD Connect by using the Express Settings.

You need to configure self-service password reset (SSPR) to meet the following requirements:

When users reset their password, they must be prompted to respond to a mobile app notification or answer three predefined security questions. Passwords must be synced between the tenant and the domain regardless of where the password was reset.

What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ Authentication methods

Reasoning: To meet the SSPR requirement for mobile app notifications or security questions, administrators must configure the ‘Authentication methods’ policy within the Password reset blade in the Azure AD admin center. This policy defines the available and required methods for users to verify their identity during a password reset.

✅ Password writeback

Reasoning: The requirement that "Passwords must be synced between the tenant and the domain regardless of where the password was reset" necessitates enabling ‘Password writeback’ in Azure AD Connect. This feature ensures that passwords reset in Azure AD (via SSPR) are synchronized back to the on-premises Active Directory.

QUESTION 55 [HOT_AREA]

You have a Microsoft 365 tenant.

Sometimes, users use external, third-party applications that require limited access to the Microsoft 365 data of the respective user. The users register the applications in Azure Active Directory (Azure AD).

You need to receive an alert if a registered application gains read and write access to the users’ email. What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ Microsoft Cloud App Security

Reasoning: Microsoft Cloud App Security (now Microsoft Defender for Cloud Apps) is the appropriate tool for discovering, monitoring, and controlling cloud applications. It excels at detecting and alerting on anomalous behavior, including suspicious OAuth app permissions, which directly addresses the need to monitor external app access to user data.

✅ OAuth app

Reasoning: Within Microsoft Defender for Cloud Apps, "OAuth app policies" are specifically designed to monitor applications that use OAuth to access Microsoft 365 data. These policies can detect and alert on apps requesting excessive or unusual permissions, such as read/write access to user emails.

QUESTION 56

You have a Microsoft 365 tenant.

The Azure Active Directory (Azure AD) tenant syncs to an on-premises Active Directory domain.

Users connect to the internet by using a hardware firewall at your company. The users authenticate to the firewall by using their Active Directory credentials. You plan to manage access to external applications by using Azure AD.

You need to use the firewall logs to create a list of unmanaged external applications and the users who access them. What should you use to gather the information?

A. Application Insights in Azure Monitor
B. access reviews in Azure AD
C. Cloud App Discovery in Microsoft Cloud App Security
D. enterprise applications in Azure AD

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅ **Cloud App Discovery in Microsoft Cloud App Security **

Reasoning: Cloud App Discovery, a feature of Microsoft Defender for Cloud Apps (formerly MCAS), is specifically designed to ingest traffic logs from firewalls and proxies. It identifies all cloud applications used in an organization, including unmanaged "shadow IT" applications, and maps users to their access, directly addressing the need to list unmanaged external applications and users from firewall logs. ❌ Why the other choices are incorrect:

Option A is incorrect: Application Insights focuses on monitoring performance and usage of instrumented custom applications, not on discovering unmanaged external applications from network device logs.
Option B is incorrect: Access reviews in Azure AD are used to periodically review existing access assignments to applications or groups already managed within Azure AD, not to discover new, unmanaged applications.
Option D is incorrect: Enterprise applications in Azure AD lists applications that have already been integrated for single sign-on or user provisioning. It does not perform discovery of unmanaged applications from firewall logs.

Reference: https://learn.microsoft.com/en-us/defender-cloud-apps/get-started-cas#cloud-app-discovery

QUESTION 57 [HOT_AREA]

You have an on-premises datacenter that contains the hosts shown in the following table.

You have an Azure Active Directory (Azure AD) tenant that syncs to the Active Directory forest. Multi-factor authentication (MFA) is enforced for Azure AD. You need to ensure that you can publish App1 to Azure AD users.

What should you configure on Server and Firewall1? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: To publish an on-premises web application like App1 to Azure AD users, the Azure AD Application Proxy connector service must be installed on an on-premises server (Server4) to create a secure, outbound connection to Azure AD.

✅

Reasoning: The Azure AD Application Proxy connector requires outbound HTTPS (port 443) connections from the connector server (Server4) to Azure AD’s Application Proxy service to function correctly and establish the communication channel.

QUESTION 58 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that has the default App registrations settings. The tenant contains the users shown in the following table.

You purchase two cloud apps named App1 and App2. The global administrator registers App1 in Azure AD. You need to identify who can assign users to App1, and who can register App2 in Azure AD.

What should you identify? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: Application Administrator (Admin1) and Cloud Application Administrator (Admin3) roles have permissions to manage enterprise applications, including assigning users. Application Developer (Admin2) and User (User1) do not possess this privilege by default.

✅

Reasoning: By default, in Azure AD, all users, including User1, can register applications. Additionally, Admin1 (Application Administrator), Admin2 (Application Developer), and Admin3 (Cloud Application Administrator) roles also have permissions to register applications.

QUESTION 59 [HOT_AREA]

You have a custom cloud app named App1 that is registered in Azure Active Directory (Azure AD). App1 is configured as shown in the following exhibit.

Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ All users

Reasoning: The setting "Enabled for users to sign-in?" is ‘Yes’ and "User assignment required?" is ‘No’. This means any user in the Azure AD tenant can attempt to sign in and access App1 via its homepage URL.

✅ all users

Reasoning: The setting "Visible to users?" is ‘Yes’ and "User assignment required?" is ‘No’. This configuration makes the application visible to all users in the tenant within their My Apps portal and Office 365 app launcher.

QUESTION 60

You have an Azure Active Directory (Azure AD) tenant.

You create an enterprise application collection named HR Apps that has the following settings:

Applications: App1, App2, App3
Owners: Admin1
Users and groups: HRUsers

All three apps have the following Properties settings:

Enabled for users to sign in: Yes
User assignment required: Yes Visible to users: Yes

Users report that when they go to the My Apps portal, they only see App1 and App2. You need to ensure that the users can also see App3.

What should you do from App3?

A. From Users and groups, add HRUsers.
B. From Single sign-on, configure a sign-on method.
C. From Properties, change User assignment required to No.
D. From Permissions, review the User consent permissions.

Click to View Verified Solution & Explanation

Correct Option: A

Explanation:

✅

Reasoning: App3 has “User assignment required: Yes”. This setting mandates that users or groups must be explicitly assigned to the enterprise application for it to appear in their My Apps portal and for them to access it. Since HRUsers are not seeing App3, assigning the HRUsers group to App3 directly fulfills this requirement, making it visible to them. ❌ Why the other choices are incorrect:

Option B is incorrect: Configuring a Single sign-on method determines how users authenticate to the application, not whether the application is visible in My Apps or if users are assigned to it.
Option C is incorrect: Changing “User assignment required” to “No” would make App3 visible to all users in the tenant by default. The problem implies a targeted solution for HRUsers, and other apps are visible with assignment required, suggesting assignment is the intended control.
Option D is incorrect: Reviewing User consent permissions relates to what data the application can access with user consent. This setting does not control the visibility of the application in the My Apps portal or user assignment status.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/manage-apps/assign-user-or-group-access-portal

QUESTION 61

You have an Azure Active Directory (Azure AD) tenant. For the tenant, Users can register applications is set to No.

A user named Admin1 must deploy a new cloud app named App1.

You need to ensure that Admin1 can register App1 in Azure AD. The solution must use the principle of least privilege. Which role should you assign to Admin1?

A. Managed Application Contributor for Subscription1.
B. Application developer in Azure AD.
C. Cloud application administrator in Azure AD.
D. App Configuration Data Owner for Subscription1.

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: The "Application developer" role specifically allows users to register applications in Azure AD when tenant-wide settings prevent general users from doing so. It aligns with the principle of least privilege by granting only the necessary permissions for Admin1 to register their own application, without broader administrative control. ❌ Why the other choices are incorrect:

Option A is incorrect: "Managed Application Contributor" is an Azure RBAC role for managing managed applications within an Azure subscription, not for registering applications in Azure AD.
Option C is incorrect: "Cloud application administrator" provides extensive permissions to manage all applications in the tenant. While it would allow registration, it violates the principle of least privilege as the "Application developer" role is more restricted and sufficient.
Option D is incorrect: "App Configuration Data Owner" is an Azure RBAC role for managing data within an Azure App Configuration resource, unrelated to registering applications in Azure AD.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/roles/permissions-reference#application-developer

QUESTION 62 [HOT_AREA]

You have a Microsoft 365 tenant that contains a group named Group1 as shown in the Group1 exhibit. (Click the Group1 tab.)

You create an enterprise application named App1 as shown in the App1 Properties exhibit. (Click the App1 Properties tab.)

You configure self-service for App1 as shown in the App1 Self-service exhibit. (Click the App1 Self-service tab.)

For each of the following statements, select Yes if the statement is true. Otherwise, select No.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation:

✅ Statement 1: Yes

Reasoning: Members of Group3 are automatically assigned to App1 because Group3 is a member of Group1, and Group1 is configured as the assignment group for App1. Since they are already assigned, they do not need self-service approval from User1 to access the application.

✅ Statement 2: No

Reasoning: User1 is configured as the approver for self-service access requests for App1. This role does not change the ownership of Group1. The Group1 exhibit shows the admin account is the owner of Group1.

✅ Statement 3: No

Reasoning: App1’s properties explicitly state “Visible to users?” is set to ‘No’. This setting prevents the application from appearing in any user’s My Apps portal or Microsoft 365 app launcher, including User4’s.

QUESTION 63

You have an Azure Active Directory (Azure AD) tenant named contoso.com that has Azure AD Identity Protection enabled. You need to implement a sign-in risk remediation policy without blocking user access.

What should you do first?

A. Configure access reviews in Azure AD.
B. Enforce Azure AD Password Protection.
C. Configure self-service password reset (SSPR) for all users.
D. Implement multi-factor authentication (MFA) for all users.

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅

Reasoning: Implementing MFA for all users is the foundational step. It enables Identity Protection sign-in risk policies to "Require multi-factor authentication" as a remediation action. This method allows users to prove their identity and remediate the risk, without blocking access, which directly addresses the policy requirement. ❌ Why the other choices are incorrect:

Option A is incorrect: Access reviews manage group memberships or application assignments, not real-time sign-in risk remediation for Identity Protection.
Option B is incorrect: Azure AD Password Protection prevents weak passwords, but it’s not a direct remediation action enforced by an Identity Protection sign-in risk policy.
Option C is incorrect: While SSPR is important for password management, it’s not the primary or first remediation action for a sign-in risk policy without blocking. Identity Protection policies directly enforce MFA or secure password change.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/identity-protection/howto-identity-protection-configure-risk-policies#multi-factor-authentication-mfa-registration-policy

QUESTION 64 [HOT_AREA]

Your company has a Microsoft 365 tenant.

All users have computers that run Windows 10 and are joined to the Azure Active Directory (Azure AD) tenant.

The company subscribes to a third-party cloud service named Service1. Service1 supports Azure AD authentication and authorization based on OAuth. Service1 is published to the Azure AD gallery.

You need to recommend a solution to ensure that the users can connect to Service1 without being prompted for authentication. The solution must ensure that the users can access Service1 only from Azure AD-joined computers. The solution must minimize administrative effort.

What should you recommend for each requirement? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **An enterprise application in Azure AD **

Reasoning: Integrating Service1 as an enterprise application in Azure AD enables Single Sign-On (SSO) for users. Since Service1 is in the Azure AD gallery and supports OAuth, setting it up as an enterprise app automatically configures the necessary connections for users to authenticate without prompts.

✅ **A conditional access policy **

Reasoning: Conditional Access policies in Azure AD allow administrators to enforce specific requirements for accessing applications. By configuring a Conditional Access policy, you can mandate that users can only access Service1 from devices that are Azure AD-joined, directly fulfilling the security requirement.

QUESTION 65

Your company requires that users request access before they can access corporate applications.

You register a new enterprise application named MyApp1 in Azure Active Directory (Azure AD) and configure single sign-on (SSO) for MyApp1. Which settings should you configure next for MyApp1?

A. Self-service
B. Provisioning
C. Application proxy
D. Roles and administrators

Click to View Verified Solution & Explanation

Correct Option: A

Explanation: ✅

Reasoning: Configuring self-service application access directly addresses the requirement for users to "request access" to corporate applications. This feature allows users to discover applications and submit access requests, which can then be approved or denied by designated approvers. ❌ Why the other choices are incorrect:

Option B is incorrect: Provisioning automates the creation, maintenance, and removal of user accounts in target applications, not the initial request mechanism for access.
Option C is incorrect: Application proxy provides secure remote access to on-premises web applications. It is unrelated to users requesting access to a registered enterprise application.
Option D is incorrect: Roles and administrators define permissions for managing the application or specific user roles within the application, not the process for users to request initial access to it.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/manage-apps/manage-self-service-access

QUESTION 66 [DRAG_DROP]

Your company has an Azure Active Directory (Azure AD) tenant named contoso.com. The company is developing a web service named App1.

You need to ensure that App1 can use Microsoft Graph to read directory data in contoso.com.

Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange then in the correct order.

Select and Place:

Question Interface:

✔ Correct Answer / Solution View:

Click to View Verified Solution & Explanation

Explanation: ✅ **an app registration. **

Reasoning: All applications needing to interact with Azure AD or Microsoft Graph must first be registered in the Azure AD tenant. This provides an identity for the application.

✅ **app permissions. **

Reasoning: For a web service (App1) to read directory data on its own behalf (without a signed-in user’s context), application permissions (e.g., Directory.Read.All for Microsoft Graph) are required.

✅ **admin consent. **

Reasoning: Application permissions, by their nature, always require an administrator to grant consent to allow the application to operate with those privileges across the tenant.

Case Study: Contoso, Ltd

The contoso.com Active Directory domain contains the relevant users shown in the following table.

Contoso also includes a marketing department that has users in each office.

Existing Environment. Microsoft 365/Azure Environment

Contoso has an Azure AD tenant named contoso.com that has the following associated licenses:

• Microsoft Office 365 Enterprise E5
• Enterprise Mobility + Security E5
• Windows 10 Enterprise E3
• Project Plan 3

Azure AD Connect is configured between Azure AD and Active Directory Domain Services (AD DS). Only the Contoso_Resources OU is synced.

Helpdesk administrators routinely use the Microsoft 365 admin center to manage user settings.

User administrators currently use the Microsoft 365 admin center to manually assign licenses. All users have all licenses assigned besides the following exceptions:

• The users in the London office have the Microsoft 365 Phone System license unassigned.
• The users in the Seattle office have the Yammer Enterprise license unassigned.

Security defaults are disabled for contoso.com.

Contoso uses Azure AD Privileged Identity Management (PIM) to protect administrative roles.

Existing Environment. Problem Statements
Contoso identifies the following issues:

Contoso plans to implement the following changes:

Contoso plans to acquire a company named A. Datum Corporation. One hundred new A. Datum users will be created in an Active Directory OU named Adatum. The users will be located in London and Seattle.

Technical Requirements
Contoso identifies the following technical requirements:

QUESTION 67

Scenario: Contoso, Ltd

You create a Log Analytics workspace.

You need to implement the technical requirements for auditing. What should you configure in Azure AD?

A. Company branding
B. Diagnostics settings
C. External Identities
D. App registrations

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅ **Diagnostics settings **

Reasoning: To send Azure AD audit logs to a Log Analytics workspace for analysis and retention (as per the requirements), you must configure Diagnostic settings within Azure AD. This feature enables streaming logs to various destinations, including Azure Monitor Log Analytics. ❌ Why the other choices are incorrect:

Option A is incorrect: Company branding customizes the sign-in experience and has no function related to auditing or log forwarding.
Option C is incorrect: External Identities manages guest user access and B2B collaboration, unrelated to configuring internal audit log streaming.
Option D is incorrect: App registrations are for registering applications with Azure AD, not for configuring audit log integration with Log Analytics.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/reports-monitoring/concept-activity-logs-azure-monitor

General Practice Questions

QUESTION 68 [HOT_AREA]

You need to implement the planned changes and technical requirements for the marketing department. What should you do? To answer, select the appropriate options in the answer area.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **An access package **

Reasoning: Access packages in Azure AD Entitlement Management consolidate access to multiple resources (groups, applications, SharePoint sites) into a single offer. They are ideal for managing user access for a department like marketing, streamlining onboarding and permission management.

✅ **A connected organization **

Reasoning: To enable collaboration with an external organization like fabrikam.com using Azure AD Entitlement Management, you must first configure a connected organization. This defines the relationship and allows for requesting access by users from that external directory.

QUESTION 69

You need to meet the planned changes for the User administrator role. What should you do?

A. Create an access review.
B. Create an administrative unit.
C. Modify Active assignments.
D. Modify Role settings.

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅

Reasoning: "Role settings" in Azure AD PIM directly control the configuration of a role, including eligibility, activation requirements, MFA, justification, and approval workflows. Modifying these settings allows you to implement planned changes to how the User administrator role functions and how its assignments are managed. ❌ Why the other choices are incorrect:

Option A is incorrect: Creating an access review verifies existing assignments against policy, but it does not implement structural "planned changes" to the role’s configuration or behavior itself.
Option B is incorrect: Creating an administrative unit scopes the delegation of administrative permissions to a subset of resources, not to modify the inherent settings or properties of the User administrator role.
Option C is incorrect: Modifying active assignments changes who currently holds the role. This addresses assignments, but not the underlying "planned changes" to the role’s overall configuration or how it operates.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/privileged-identity-management/pim-how-to-change-role-settings

Case Study: Litware, Inc.

Instructions

To start the case study

Overview

Litware, Inc. is a pharmaceutical company that has a subsidiary named Fabrikam, Inc.

Litware has offices in Boston and Seattle, but has employees located across the United States. Employees connect remotely to either office by using a VPN connection.

Existing Environment

Identity Environment

Litware.com contains a user named User1 who oversees all application development. Litware implements Azure AD Application Proxy.

Fabrikam has an Azure AD tenant named fabrikam.com. The users at Fabrikam access the resources in litware.com by using guest accounts in the litware.com tenant.

Cloud Environment

All the users at Litware have Microsoft 365 Enterprise E5 licenses. All the built-in anomaly detection policies in Microsoft Cloud App Security are enabled.

On-premises Environment

The on-premises network contains the servers shown in the following table.

Requirements

Delegation Requirements

Litware identifies the following delegation requirements:

Delegate the management of privileged roles by using Azure AD Privileged Identity Management (PIM). Prevent nonprivileged users from registering applications in the litware.com Azure AD tenant.

Use custom programs for Identity Governance.

Ensure that User1 can create enterprise applications in Azure AD. Use the principle of least privilege.

Licensing Requirements

Management Requirements

Litware wants to create a group named LWGroup1 that will contain all the Azure AD user accounts for Litware but exclude all the Azure AD guest accounts.

Authentication Requirements

Litware identifies the following authentication requirements:

Implement multi-factor authentication (MFA) for all Litware users by using conditional access policies. Exempt users from using MFA to authenticate to Azure AD from the Boston office of Litware.

Implement a banned password list for the litware.com forest. Enforce MFA when accessing on-premises applications.

Automatically detect and remediate externally leaked credentials.

Access Requirements

Litware identifies the following access requirements:

Control privileged access to applications by using access reviews in Azure AD.

Monitoring Requirements

Litware wants to use the Fusion rule in Azure Sentinel to detect multi-staged attacks that include a combination of suspicious Azure AD sign-ins followed by anomalous Microsoft Office 365 activity.

QUESTION 70

Scenario: Litware, Inc.

You need to configure the detection of multi-staged attacks to meet the monitoring requirements. What should you do?

A. Customize the Azure Sentinel rule logic.
B. Create a workbook.
C. Add Azure Sentinel data connectors.
D. Add an Azure Sentinel playbook.

Click to View Verified Solution & Explanation

Correct Option: C

Explanation:

To detect multi-staged attacks using Azure Sentinel’s Fusion rule, all relevant data sources must be connected to Azure Sentinel. The monitoring requirements specify detecting attacks that combine ‘suspicious Azure AD sign-ins’ and ‘anomalous Microsoft Office 365 activity’. While the existing environment confirms that the Azure Active Directory connector collects sign-in logs and the Office 365 connector collects audit logs, the detection of ‘anomalous Microsoft Office 365 activity’ is explicitly handled by Microsoft Cloud App Security (MCAS, now Microsoft Defender for Cloud Apps), as stated: ‘All the built-in anomaly detection policies in Microsoft Cloud App Security are enabled.’ For Fusion to correlate these MCAS-generated anomalies with other alerts, the Microsoft Defender for Cloud Apps data connector must be enabled in Azure Sentinel to ingest MCAS alerts and activity logs. Since the case study only explicitly mentions the Azure AD and Office 365 connectors, ensuring the MCAS connector is also active is a crucial step to meet the monitoring requirement.

Reference: https://learn.microsoft.com/en-us/azure/sentinel/fusion

General Practice Questions

QUESTION 71

You need to track application access assignments by using Identity Governance. The solution must meet the delegation requirements. What should you do first?

A. Modify the User consent settings for the enterprise applications.
B. Create a catalog.
C. Create a program.
D. Modify the Admin consent requests settings for the enterprise applications.

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: When implementing Identity Governance with delegation requirements, a program is the highest-level container in Entitlement Management. It establishes an administrative boundary for catalogs and access packages, enabling delegation of governance tasks to non-administrators. Creating a program is the foundational first step to structure your delegated access management. ❌ Why the other choices are incorrect:

Option A is incorrect: Modifying user consent settings controls how applications can access user data, not the initial setup for tracking and delegating application access assignments via Identity Governance.
Option B is incorrect: A catalog is created within a program. While essential, you must first have a program (even the default) to house catalogs. Creating a specific program is typically the first step for dedicated delegation.
Option D is incorrect: Modifying admin consent requests manages how administrators approve application permissions. This is separate from establishing the Entitlement Management structure for delegated access assignment tracking.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/governance/entitlement-management-overview#program

QUESTION 72

You have a Microsoft 365 tenant.

In Azure Active Directory (Azure AD), you configure the terms of use.

You need to ensure that only users who accept the terms of use can access the resources in the tenant. Other users must be denied access. What should you configure?

A. an access policy in Microsoft Cloud App Security.
B. Terms and conditions in Microsoft Endpoint Manager.
C. a conditional access policy in Azure AD
D. a compliance policy in Microsoft Endpoint Manager

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: Azure AD Conditional Access policies are specifically designed to enforce requirements, such as "Require terms of use," before granting access to resources. This directly ensures only users who accept the terms can access tenant resources, denying others. ❌ Why the other choices are incorrect:

Option A is incorrect: Microsoft Cloud App Security access policies focus on real-time session control and data exfiltration, not the primary enforcement of Azure AD terms of use for initial resource access.
Option B is incorrect: Terms and conditions in Microsoft Endpoint Manager primarily relate to device enrollment or company portal usage, distinct from enforcing Azure AD’s general terms of use for tenant resource access.
Option D is incorrect: Compliance policies in Microsoft Endpoint Manager assess device health and configurations. They do not directly manage or enforce user acceptance of tenant-wide terms of use for resource access.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/conditional-access/howto-terms-of-use

QUESTION 73

You have an Azure Active Directory (Azure AD) tenant that contains the groups shown in the following table.

For which groups can you create an access review?

A. Group1 only
B. Group1 and Group4 only
C. Group1 and Group2 only
D. Group1, Group2, Group4, and Group5 only
E. Group1, Group2, Group3, Group4 and Group5

Click to View Verified Solution & Explanation

Correct Option: E

Explanation: ✅

Reasoning: Azure AD access reviews support both Security and Microsoft 365 groups. This includes groups with Assigned, Dynamic User, and Dynamic Device membership types. All listed groups (Group1, Group2, Group3, Group4, and Group5) fall into these supported categories, making them eligible for an access review. ❌ Why the other choices are incorrect:

Option A is incorrect: It incorrectly limits access reviews to Group1 only, excluding other eligible group types and membership types.
Option B is incorrect: It incorrectly excludes Group2, Group3, and Group5, which are also fully supported for access reviews.
Option C is incorrect: It incorrectly excludes Group3, Group4, and Group5, despite their eligibility for access reviews.
Option D is incorrect: It incorrectly excludes Group3, which is a Security group with Dynamic Device membership, a supported configuration for access reviews.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/governance/create-access-review

QUESTION 74

You have an Azure Active Directory (Azure AD) tenant that contains the users shown in the following table.

User1 is the owner of Group1.

You create an access review that has the following settings:

Users to review: Members of a group Scope: Everyone

Group: Group1

Reviewers: Members (self)

Which users can perform access reviews for User3?

A. User1, User2, and User3
B. User3 only
C. User1 only
D. User1 and User2 only

Click to View Verified Solution & Explanation

Correct Option: B

Explanation: ✅

Reasoning: The access review is configured with "Reviewers: Members (self)". This means each user in Group1 (including User3) is responsible for reviewing their own access. Therefore, only User3 can review their own membership. ❌ Why the other choices are incorrect:

Option A is incorrect: User1 and User2 only review their own access, not User3’s, because the reviewer setting is "Members (self)".
Option C is incorrect: User1 is the group owner but is not designated as a reviewer for others in this specific access review setup. "Members (self)" overrides this.
Option D is incorrect: User1 and User2 are members, but the "Members (self)" setting restricts them to reviewing only their own access, not User3’s.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/governance/create-access-review#reviewers

QUESTION 75 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant that contains Azure AD Privileged Identity Management (PIM) role settings for the User administrator role as shown in the following exhibit.

Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅ **8 hours **

Reasoning: The PIM settings show "On activation, require Azure MFA: Yes" and "Activation maximum duration (hours): 8 hour(s)". This means a user must perform MFA each time they activate the role, and each activation is valid for a maximum of 8 hours. To continue using the role, reactivation (and thus re-authentication with MFA) would be required after 8 hours.

✅ **global administrator or privileged role administrator **

Reasoning: The PIM settings indicate "Require approval to activate: Yes" but "Approvers: None". According to PIM default behavior, if no specific approvers are configured, Global Administrators and Privileged Role Administrators implicitly have the ability to approve activation requests for PIM roles.

QUESTION 76 [HOT_AREA]

You have an Azure Active Directory (Azure AD) tenant named contoso.com that contains a user named User1. User1 has the devices shown in the following table.

On November 5, 2020, you create and enforce terms of use in contoso.com that has the following settings:

Name: Terms1

Display name: Contoso terms of use

Require users to expand the terms of use: On

Require users to consent on every device: On Expire consents: On

Expire starting on: December 10, 2020 Frequency: Monthly

On November 15, 2020, User1 accepts Terms1 on Device3.

For each of the following statements, select Yes if the statement is true. Otherwise, select No.

NOTE: Each correct selection is worth one point.

Hot Area:

✔ Correct Answer:

Click to View Verified Solution & Explanation

Explanation: ✅

Reasoning: The terms require consent on "every device." Since User1 accepted on Device3, but not Device1, and no expiration has occurred by November 20, User1 will be prompted and can accept on Device1.

✅

Reasoning: Consent expires starting December 10, 2020. On December 11, all prior consents are expired. User1 will be required to re-consent on any device, including Device2, upon accessing a protected resource.

✅

Reasoning: User1 accepted Terms1 on Device3 on November 15, 2020. The consent does not expire until December 10, 2020. On December 7, the existing consent is still valid, so User1 will not be prompted to accept again.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/conditional-access/terms-of-use#how-terms-of-use-work

QUESTION 77

Your company recently implemented Azure Active Directory (Azure AD) Privileged Identity Management (PIM).

While you review the roles in PIM, you discover that all 15 users in the IT department at the company have permanent security administrator rights. You need to ensure that the IT department users only have access to the Security administrator role when required.

What should you configure for the Security administrator role assignment?

A. Expire eligible assignments after from the Role settings details
B. Expire active assignments after from the Role settings details
C. Assignment type to Active
D. Assignment type to Eligible

Click to View Verified Solution & Explanation

Correct Option: D

Explanation: ✅

Reasoning: Setting the assignment type to ‘Eligible’ means users are not permanently assigned the role. Instead, they can activate it only when needed, for a limited time, enabling just-in-time access. This directly meets the requirement to grant access only when required, improving security. ❌ Why the other choices are incorrect:

Option A is incorrect: Expiring eligible assignments determines how long a user can activate the role without re-applying for eligibility. It doesn’t change a permanent active assignment to an eligible, just-in-time model; it’s a setting for eligible assignments.
Option B is incorrect: Expiring active assignments means the role is active for a defined duration, not just-in-time. Users would still have continuous access for that period, which doesn’t align with granting access only when required.
Option C is incorrect: An ‘Active’ assignment type grants permanent or time-bound continuous access to the role. The problem explicitly states users currently have permanent rights, and the goal is to move away from this continuous access model to a just-in-time approach.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/privileged-identity-management/pim-assign-roles-azure-ad

QUESTION 78

You have a Microsoft 365 tenant.

The Sign-ins activity report shows that an external contractor signed in to the Exchange admin center.

You need to review access to the Exchange admin center at the end of each month and block sign-ins if required. What should you create?

A. an access package that targets users outside your directory
B. an access package that targets users in your directory
C. a group-based access review that targets guest users
D. an application-based access review that targets guest users

Click to View Verified Solution & Explanation

Correct Option: C

Explanation: ✅

Reasoning: A group-based access review effectively targets the membership of a security group that grants access to the Exchange admin center. It allows for recurring monthly reviews and can be configured to target only guest users, providing the necessary functionality to block sign-ins for the external contractor if required. ❌ Why the other choices are incorrect:

Option A is incorrect: Access packages are primarily for granting and managing new access for users, including those outside the directory, not for recurring reviews of existing access with the intent to block sign-ins.
Option B is incorrect: Similar to A, access packages grant access. Also, the scenario specifies an external contractor, making "users in your directory" less relevant than guest users.
Option D is incorrect: While EAC is an application, administrative access is typically managed through roles and group memberships, not direct application assignment in Azure AD. A group-based review is more appropriate for reviewing access granted via group membership.

Reference: https://learn.microsoft.com/en-us/azure/active-directory/governance/create-access-review

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