Microsoft MS-102 Microsoft 365 Administrator Exam Dumps and Practice Test Questions Set 3 Q31-45
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Question 31
A company wants to ensure that all emails containing personally identifiable information (PII) are automatically detected and protected, including emails sent outside the organization. Which feature should the administrator configure?
A) Microsoft 365 Data Loss Prevention (DLP) Policies
B) Azure AD Conditional Access
C) Microsoft Intune Device Compliance
D) Exchange Online Retention Policies
Answer: A) Microsoft 365 Data Loss Prevention (DLP) Policies
Explanation:
Microsoft 365 Data Loss Prevention (DLP) Policies are designed to automatically identify, monitor, and protect sensitive information across Microsoft 365 workloads, including Exchange Online, SharePoint, OneDrive, and Microsoft Teams. DLP can detect personally identifiable information (PII) such as social security numbers, passport numbers, financial data, or health records. When PII is detected, DLP policies can enforce actions such as blocking the email, encrypting content, notifying the sender, or logging the event for auditing purposes. By configuring DLP policies, administrators ensure that sensitive information is protected before it leaves the organization, reducing the risk of accidental leaks and ensuring compliance with regulations such as GDPR, HIPAA, or CCPA. DLP provides predefined sensitive information types that organizations can use to create policies quickly, and it also allows custom sensitive data patterns to address specific business needs. DLP integrates seamlessly across Microsoft 365 services, providing consistent enforcement of policies regardless of the platform used to send or store information.
Azure AD Conditional Access focuses on controlling access to Microsoft 365 applications based on identity, device compliance, location, and risk levels. While Conditional Access ensures that only trusted users and devices can access organizational resources, it does not inspect email content for sensitive data or enforce protection policies for PII. Conditional Access is primarily focused on authentication and access, not content security.
Microsoft Intune Device Compliance enforces security configurations on endpoints, such as encryption, antivirus, PIN policies, and OS updates. Compliance policies ensure that only secure devices can access Microsoft 365 resources when combined with Conditional Access. While Intune enhances device security and reduces risk, it cannot detect sensitive email content or automatically protect PII in messages sent outside the organization. Device compliance provides signals for access control but does not provide content-level enforcement.
Exchange Online Retention Policies manage the lifecycle of email messages, ensuring that content is retained for a specific period or deleted according to organizational or regulatory requirements. Retention policies support compliance with records management obligations but do not inspect email content for sensitive information or enforce protection actions such as encryption or blocking. Retention focuses on the preservation of content, not the prevention of data leakage.
By implementing Microsoft 365 DLP policies, organizations can proactively secure PII and other sensitive information. DLP policies enable automated enforcement, reducing reliance on user judgment and minimizing the risk of accidental data exposure. Administrators can configure notifications, policy tips, and reporting, which educates users about data protection practices and provides transparency and accountability. DLP integrates with sensitivity labels and encryption, further enhancing protection. Organizations can monitor the effectiveness of DLP policies using detailed reports and audit logs, allowing adjustments to rules or sensitive information types as business or regulatory needs change. By leveraging DLP, companies ensure that sensitive emails are appropriately monitored and protected while maintaining compliance, operational efficiency, and consistent application of security policies across Microsoft 365 workloads.
Question 32
A company wants to ensure that only users accessing Microsoft 365 from approved locations and compliant devices can access sensitive corporate resources. Which combination of features should the administrator configure?
A) Azure AD Conditional Access and Microsoft Intune Device Compliance
B) Microsoft 365 Retention Policies and Exchange Online Mailbox Rules
C) Microsoft Purview Information Protection and Data Loss Prevention (DLP) Policies
D) Microsoft Teams Policies and Microsoft 365 Sensitivity Labels
Answer: A) Azure AD Conditional Access and Microsoft Intune Device Compliance
Explanation:
Azure AD Conditional Access is a cloud-based policy engine that evaluates signals such as user identity, device compliance, application risk, and location before granting access to Microsoft 365 resources. Conditional Access enables administrators to enforce policies that block or allow access based on specific conditions, providing granular control over authentication and access. In this scenario, the organization wants access to be limited to approved locations and compliant devices. By integrating Conditional Access with Microsoft Intune, the administrator can enforce policies based on device compliance signals, such as encryption, OS version, PIN enforcement, and antivirus status. Conditional Access can also restrict access based on network location, allowing only connections from trusted IP addresses or regions. This combination ensures that sensitive corporate resources are accessible only from secure, approved endpoints while mitigating the risk of unauthorized access.
Microsoft 365 Retention Policies ensure content is retained for regulatory or organizational purposes or deleted after a specified period. While retention policies help maintain compliance and content governance, they do not evaluate device compliance or location for access to Microsoft 365 services. Retention policies focus on content lifecycle management rather than access control.
Exchange Online Mailbox Rules allow administrators or users to manage email flow, including actions based on sender, recipient, or content. Mailbox rules cannot enforce access restrictions based on device compliance or location. They are reactive controls applied to emails, not preventive access management solutions.
Microsoft Purview Information Protection and Data Loss Prevention (DLP) Policies protect and classify content based on sensitivity and prevent data leakage. While essential for securing sensitive documents and emails, these tools do not restrict access based on device compliance or geographic location. They focus on content-level protection rather than access-level enforcement.
Microsoft Teams Policies and Microsoft 365 Sensitivity Labels control Teams functionalities and classify content for data protection. Teams policies regulate chat, channel creation, and app usage, while sensitivity labels classify and encrypt content. However, these tools do not enforce device compliance or location-based access restrictions, making them unsuitable for restricting access to only approved locations and compliant devices.
Combining Azure AD Conditional Access and Intune Device Compliance ensures that access to sensitive corporate resources is both identity- and device-aware. Conditional Access evaluates real-time risk signals and applies access rules, while Intune provides the compliance data necessary for enforcement. Administrators can implement policies that require compliant devices and approved locations, block risky sign-ins, enforce multi-factor authentication, and maintain visibility into access patterns. This integrated approach balances security and productivity, preventing unauthorized access while enabling employees to work efficiently on secure endpoints. Organizations can audit access events, generate compliance reports, and adjust policies as requirements evolve. This solution provides a scalable, centralized, and proactive security framework, reducing exposure to threats, maintaining regulatory compliance, and safeguarding sensitive resources across Microsoft 365.
Question 33
A company wants to provide different levels of access to SharePoint sites based on user roles and sensitivity of information. Which Microsoft 365 feature should the administrator configure?
A) Microsoft Purview Sensitivity Labels with Site and Document Permissions
B) Azure AD Conditional Access
C) Exchange Online Retention Policies
D) Microsoft Intune Device Compliance
Answer: A) Microsoft Purview Sensitivity Labels with Site and Document Permissions
Explanation:
Microsoft Purview Sensitivity Labels allow organizations to classify content and apply protection settings at both the document and site level. Administrators can create labels with specific access restrictions, such as encryption, external sharing restrictions, and read-only or view-only permissions. When applied to SharePoint sites, sensitivity labels can enforce access policies based on the sensitivity of information and user roles, ensuring that only authorized personnel can access critical data. Sensitivity labels can be applied automatically through auto-labeling policies, manually by users, or as a combination, providing flexibility and reducing the risk of accidental exposure. By integrating sensitivity labels with Microsoft 365 Groups and SharePoint permissions, organizations can control who can edit, view, or share content, maintain confidentiality, and comply with internal or regulatory policies.
Azure AD Conditional Access evaluates device compliance, user identity, and location before granting access to Microsoft 365 apps. While Conditional Access can enforce authentication requirements or block access based on risk signals, it does not define granular permissions at the SharePoint site or document level. Conditional Access focuses on who can access resources rather than the level of access within a resource.
Exchange Online Retention Policies manage the lifecycle of emails or documents, specifying retention or deletion periods. Retention policies ensure compliance with legal or organizational requirements but do not provide role-based access or protect content based on sensitivity. Retention addresses preservation and deletion, not access control.
Microsoft Intune Device Compliance ensures that devices meet security standards, providing signals for Conditional Access. Compliance policies protect endpoints but do not control user access within SharePoint or the level of permissions applied to specific content. Device compliance is endpoint-focused rather than content-focused.
By configuring Microsoft Purview Sensitivity Labels with site and document permissions, organizations can enforce granular access controls that align with information sensitivity and user roles. Labels provide automated protection, restrict sharing, enforce encryption, and integrate with Teams, SharePoint, and OneDrive. Administrators can define classification rules, monitor label usage, generate audit logs, and ensure adherence to security policies. This approach supports a flexible, scalable, and consistent access management framework across Microsoft 365, balancing security, compliance, and productivity. Sensitivity labels protect data proactively, reduce the risk of accidental exposure, and provide organizations with visibility and control over how sensitive information is accessed and shared.
Question 34
A company wants to prevent users from forwarding sensitive emails outside the organization while allowing internal sharing. Which feature should the administrator configure?
A) Microsoft Purview Sensitivity Labels with Encryption and Content Restrictions
B) Azure AD Conditional Access
C) Exchange Online Retention Policies
D) Microsoft Intune Device Compliance
Answer: A) Microsoft Purview Sensitivity Labels with Encryption and Content Restrictions
Explanation:
Microsoft Purview Sensitivity Labels allow organizations to classify emails and documents and enforce protection policies based on sensitivity. For the scenario described, administrators can configure sensitivity labels with encryption and content restrictions to prevent users from forwarding sensitive emails externally while still allowing internal sharing. When applied, the labels can restrict permissions, such as preventing forwarding, printing, or copying by unauthorized recipients. Encryption ensures that only authorized users can access the content, adding an additional layer of protection against accidental or intentional leakage.
Azure AD Conditional Access is focused on controlling access to Microsoft 365 apps based on identity, device compliance, and location. While Conditional Access can require multi-factor authentication or restrict access from unmanaged devices, it cannot enforce content-level restrictions such as preventing external forwarding. Conditional Access addresses access to the application or resource itself, not the permissions applied to the content within the application.
Exchange Online Retention Policies manage the lifecycle of messages and other content by specifying retention or deletion periods. Retention policies ensure compliance with regulatory requirements but do not prevent users from forwarding or sharing content externally. Retention is focused on data preservation rather than enforcing permissions or content-level restrictions.
Microsoft Intune Device Compliance ensures that devices meet security requirements, such as encryption, PIN enforcement, and antivirus protections. While Intune integrates with Conditional Access to limit access to compliant devices, it does not provide content-level controls for emails or documents. Device compliance ensures endpoint security but does not prevent unauthorized sharing or forwarding of sensitive emails.
By implementing Microsoft Purview Sensitivity Labels with encryption and content restrictions, organizations can proactively enforce policies that protect sensitive information. Labels can be applied automatically using auto-labeling policies based on content inspection or manually by end users. They provide a consistent mechanism to ensure compliance with internal policies and regulatory requirements, such as GDPR or HIPAA. Administrators can monitor label usage, generate reports, and adjust policies over time to respond to evolving business needs. Sensitivity labels also integrate with other Microsoft 365 services such as Teams, SharePoint, and OneDrive, ensuring comprehensive protection across workloads. This solution balances security with productivity by allowing internal collaboration while blocking risky external actions, maintaining regulatory compliance, and reducing the likelihood of accidental or malicious data leakage.
Question 35
A company wants to ensure that all Teams channels containing confidential project information are automatically labeled and encrypted. Which feature should the administrator configure?
A) Microsoft Purview Sensitivity Labels – Auto-labeling for Teams
B) Azure AD Conditional Access
C) Microsoft 365 Retention Policies
D) Exchange Online Data Loss Prevention (DLP) Policies
Answer: A) Microsoft Purview Sensitivity Labels – Auto-labeling for Teams
Explanation:
Microsoft Purview Sensitivity Labels can be applied automatically to Teams channels based on the content stored within them or predefined rules. Auto-labeling allows administrators to scan messages, documents, or files in Teams channels and apply encryption or access restrictions for confidential project information without relying on manual user intervention. This ensures consistent protection across collaboration channels and minimizes human error. Sensitivity labels can enforce restrictions such as limiting access to specific users or groups, preventing external sharing, and encrypting messages and documents. By applying labels automatically, organizations maintain regulatory compliance and protect sensitive project data while allowing authorized users to collaborate efficiently within Teams.
Azure AD Conditional Access enforces access policies based on user identity, device compliance, location, or risk level. While Conditional Access can require multi-factor authentication or restrict access from unmanaged devices, it does not inspect Teams content or automatically apply encryption or labels. Conditional Access secures access to the application, but it does not govern the content within Teams channels.
Microsoft 365 Retention Policies manage the lifecycle of Teams messages or documents by defining how long content should be preserved or deleted. Retention ensures compliance with legal and organizational requirements but does not provide automated labeling, encryption, or access restrictions based on content sensitivity. Retention policies focus on preserving content for a set duration rather than actively securing sensitive information in real-time.
Exchange Online Data Loss Prevention (DLP) Policies monitor content for sensitive information and can block or restrict actions such as sharing or forwarding. While DLP is effective in preventing accidental data leaks, it does not automatically label or encrypt Teams channels. DLP is reactive in nature and typically focuses on emails, documents, or messaging content rather than proactive auto-labeling and encryption in Teams channels.
By configuring Microsoft Purview Sensitivity Labels with auto-labeling for Teams, organizations can enforce content protection dynamically and consistently. Auto-labeling policies scan Teams messages and files for sensitive information and apply predefined labels with encryption and access restrictions. This reduces the risk of accidental exposure, supports regulatory compliance, and maintains collaboration productivity. Administrators can define label rules, monitor label usage, and generate reports for auditing purposes. Integration with other Microsoft 365 services ensures consistent protection across Teams, SharePoint, and OneDrive, creating a comprehensive information protection strategy that balances security and usability.
Question 36
A company wants to prevent users from storing OneDrive files locally on unmanaged devices. Which feature should the administrator configure?
A) Microsoft Intune App Protection Policies
B) Azure AD Conditional Access
C) Microsoft 365 Retention Policies
D) Microsoft Purview Data Loss Prevention (DLP) Policies
Answer: A) Microsoft Intune App Protection Policies
Explanation:
Microsoft Intune App Protection Policies (APP) are designed to protect corporate data within mobile apps, such as OneDrive, Outlook, Teams, and SharePoint, regardless of whether the device is enrolled in Intune. In this scenario, the organization wants to prevent users from storing OneDrive files locally on unmanaged devices. App Protection Policies can enforce restrictions such as preventing data from being copied or saved to local storage, requiring encryption, controlling copy/paste between apps, and restricting data backup to personal storage. These policies ensure that corporate data remains within managed applications and cannot be exfiltrated to personal devices or cloud storage, providing robust data protection for sensitive information. App Protection Policies are particularly useful for Bring Your Own Device (BYOD) scenarios where device enrollment may not be feasible.
Azure AD Conditional Access evaluates user identity, device compliance, and risk before granting access to Microsoft 365 applications. While Conditional Access can block access from unmanaged devices, it cannot prevent users from storing files locally once access is granted. Conditional Access focuses on access control rather than enforcing granular restrictions on data handling within apps.
Microsoft 365 Retention Policies manage the lifecycle of files and emails, ensuring retention for regulatory or organizational requirements. Retention policies do not control whether users can store files locally or prevent data exfiltration. Retention is content-focused rather than device or app-focused.
Microsoft Purview Data Loss Prevention (DLP) Policies monitor and prevent sensitive data sharing across Microsoft 365 services. While DLP can prevent sharing of sensitive data outside the organization, it does not prevent local storage of files on unmanaged devices. DLP focuses on content-level data leakage prevention rather than endpoint or app-level storage restrictions.
By configuring Intune App Protection Policies, organizations ensure that OneDrive files remain within managed applications and cannot be stored locally on unmanaged devices. Policies can enforce encryption, prevent data transfer to unauthorized locations, restrict copy/paste actions, and manage access even on personal devices. Administrators can monitor policy compliance, enforce access restrictions dynamically, and provide secure BYOD access to corporate resources. Integration with Conditional Access ensures that only compliant devices or users adhering to APP policies can access Microsoft 365 services. This approach protects corporate data, reduces risk of accidental or malicious data exposure, and maintains operational productivity across different device types and locations. App Protection Policies provide a scalable, centralized, and proactive security framework for managing corporate data on mobile and unmanaged devices while preserving user experience and compliance requirements.
Question 37
You manage a Microsoft 365 tenant for a global company. The security team wants to ensure that all user sign-ins are blocked when they come from countries your organization does not operate in. The requirement is to automatically detect high-risk geographic locations and prevent access in real time. You need to configure a solution that enforces this with minimal administrative maintenance.
What should you configure?
A) Configure Azure AD Named Locations with country-based blocking in Conditional Access
B) Enable Azure AD Identity Protection Sign-In Risk Policy
C) Enable Microsoft Defender for Cloud Apps Session Policy
D) Create an Exchange Online mail flow rule that blocks sign-ins from unsupported regions
Answer: A) Configure Azure AD Named Locations with country-based blocking in Conditional Access
Explanation;
Using geographical restrictions to enhance account protection is an important strategy for organizations operating in limited regions. When implementing sign-in restrictions at the tenant level, different tools in Microsoft 365 offer unique purposes. Understanding their role in identity security helps determine which method best enforces country-based blocking with reduced operational overhead.
The first configuration involves setting up geographical locations in the identity provider. Azure AD Named Locations allows administrators to define countries and IP address ranges considered trusted, untrusted, or blocked. Once these regions are defined, Conditional Access can evaluate sign-ins based on the user’s location. This provides a precise way to block authentication attempts from countries that fall outside approved boundaries. By identifying specific countries, the policy remains straightforward and requires very little maintenance unless the company expands operations. Whenever a sign-in originates from an unapproved region, access is blocked before session establishment, producing a highly efficient protection mechanism.
The next configuration addresses automated risk detection rather than geographic evaluation. Enabling Identity Protection’s sign-in risk policy assesses each authentication attempt and applies automated decisions based on suspicious behavior. While the system can detect unusual locations as part of its machine learning assessment, it does not consistently block entire countries, nor is it designed to enforce region-based access rules. Its purpose is risk-based remediation, such as requiring additional verification for risky sign-ins. This means it does not meet the requirement for explicitly blocking all traffic originating from countries where the organization does not operate. Although the tool offers excellent threat detection and continuous learning, it is not designed as a geographic enforcement mechanism.
The third configuration focuses on session inspection rather than authentication enforcement. Microsoft Defender for Cloud Apps Session Policies allow the organization to monitor and control in-session behavior using real-time signals. These policies can detect risky countries and limit specific actions during a session; however, they operate only after authentication is completed. Since the requirement is to block sign-ins entirely from high-risk or unsupported locations, the session-based approach cannot deliver the preauthentication enforcement needed. It is effective for data protection within active sessions but does not prevent sign-in attempts the way geographical Conditional Access rules do.
The final configuration centers on email flow instead of identity management. Exchange Online mail flow rules control the movement and handling of email messages. These rules cannot block sign-ins, authenticate users, or enforce identity-related decisions. They apply only to email-related traffic after authentication has occurred. As such, they offer no capability for preventing access to the Microsoft 365 tenant based on country. This method is entirely unrelated to the requirement and cannot accomplish the requested functionality.
In evaluating all methods, only Azure AD Named Locations with Conditional Access achieves precise geographic restriction at the identity layer. It stops sign-ins before resource access, meets the requirement for real-time enforcement, and maintains a minimal administrative footprint. Administrators only need to list permitted countries once, and enforcement applies continuously. This approach also aligns closely with zero-trust standards because it ensures authentication validation based on both user identity and location context before granting access.
Thus, the correct configuration is Azure AD Named Locations with country-based blocking using Conditional Access.
Question 38
A company uses Microsoft 365 and wants to ensure that data labeled as “Highly Confidential” is never downloaded to unmanaged devices. Users should still be able to view the documents when accessing them from personal devices, but downloads must be fully prevented. You need to enforce this behavior consistently across SharePoint and OneDrive.
What should you configure?
A) Conditional Access App Control with Microsoft Defender for Cloud Apps
B) SharePoint Site-Level Sharing Restrictions
C) Microsoft Purview Sensitivity Label with Auto-Labeling
D) Exchange Online Transport Rule
Answer: A) Conditional Access App Control with Microsoft Defender for Cloud Apps
Explanation;
Preventing the download of sensitive information to unmanaged devices requires a solution capable of inspecting user context, device state, session activity, and file interaction. Various Microsoft 365 tools provide data governance and security controls, but not all of them enforce real-time session-level restrictions such as blocking downloads while still allowing view permissions. Identifying the correct capability involves understanding which technologies manage device-based access versus which manage content governance or email flow.
The first configuration uses Conditional Access App Control, integrated with Microsoft Defender for Cloud Apps. This solution enables real-time session monitoring for cloud applications. With it, organizations can create granular controls such as allowing users to view documents in a protected browser session while preventing downloads, prints, sync operations, or file copies. It also applies consistently across SharePoint and OneDrive, addressing the requirement for uniform behavior. When access is from unmanaged devices, the system routes traffic through a session proxy that enforces restrictions without altering document permissions or labels. This approach directly aligns with the requirement: viewing is allowed, downloading is blocked, and enforcement is dynamic based on device state.
The next configuration option focuses on restricting external sharing and controlling who can access content at the site level. SharePoint site-level sharing restrictions manage whether users can share content externally or whether certain authentication methods are required. While these restrictions are useful for access management, they do not provide session-level controls. They cannot differentiate between viewing and downloading, nor can they dynamically block downloads on unmanaged devices. Their scope is too limited to satisfy the real-time enforcement requirement.
The third configuration involves applying a sensitivity label to content. Sensitivity labels govern classification, encryption, and usage rights. While rights management can restrict downloads in certain scenarios, it applies restrictions uniformly across all devices and platforms. The requirement specifies that users should still be able to view documents on unmanaged devices, meaning a label that blocks downloads would also block viewing unless fully configured with advanced permissions. Additionally, auto-labeling does not provide device-based logic, and sensitivity labels alone cannot enforce real-time access inspection or session proxying. They contribute to data protection but do not meet the requirement as a standalone solution.
The final configuration addresses email flow rather than cloud storage. Exchange Online transport rules evaluate email content as messages move through the system. They cannot affect how users interact with files stored in SharePoint or OneDrive, nor can they prevent downloads within cloud applications. As such, this method is irrelevant to device-based download restrictions within SharePoint or OneDrive and cannot meet the requirement.
Comparing all options, only Conditional Access App Control with Microsoft Defender for Cloud Apps provides the capability to allow in-browser viewing while preventing downloads on unmanaged devices across SharePoint and OneDrive. It meets the requirement precisely and uses dynamic session controls to enforce protection.
Therefore, the correct configuration is Conditional Access App Control with Defender for Cloud Apps.
Question 39
A company requires that all users authenticate with phishing-resistant methods. The security team wants a solution that supports FIDO2 security keys, enforces modern multi-factor authentication, and ensures legacy protocols do not bypass the requirement. You need to implement a tenant-wide method that guarantees compliant authentication.
What should you configure?
A) Authentication Strengths in Conditional Access
B) Microsoft Defender Antivirus Policies
C) Azure AD Password Protection
D) Intune Device Compliance Policy
Answer: A) Authentication Strengths in Conditional Access
Explanation;
Creating a secure authentication environment that prevents phishing attacks requires enforcing strong authentication methods. Understanding the distinctions among identity-based controls, device-based controls, antivirus protections, and password policies is essential to determining which capability enforces phishing-resistant authentication for all users consistently. The goal is to require modern authentication methods such as FIDO2 keys and block older, weaker protocols.
The first configuration centers on enforcing strong authentication through Conditional Access. Authentication Strengths provide a method to define which authentication mechanisms must be used when accessing the tenant. These strengths allow administrators to require specific authentication methods such as FIDO2 security keys, Windows Hello for Business, and certificate-based authentication. When a policy is enforced, users must complete sign-in using one of the approved phishing-resistant techniques. Older methods such as SMS, phone call authentication, or app passwords cannot satisfy this requirement. Authentication Strengths also integrate with Conditional Access, ensuring that every request uses compliant methods. Additionally, enabling modern authentication controls blocks older protocols such as POP, IMAP, SMTP basic authentication, and others that bypass MFA. This aligns directly with the requirement to enforce phishing-resistant authentication at a tenant-wide level.
The second configuration focuses on endpoint protection rather than identity security. Microsoft Defender Antivirus Policies are designed to prevent malware execution, detect threats, and improve device security posture. While these policies contribute significantly to overall security, they play no part in enforcing authentication method requirements. Antivirus configurations do not regulate MFA, passwordless authentication, or protocol enforcement. They operate at the device level, not the identity layer. Therefore, they do not address authentication modality requirements.
The next configuration addresses the password layer by preventing weak or commonly used passphrases. Azure AD Password Protection enforces custom banned password lists and applies global password strength restrictions. While this enhances password security, it does not enforce MFA, passwordless authentication, or phishing-resistant methods. It also cannot block legacy protocols or enforce strong authentication across cloud applications. It is a tool for password hygiene, not for authentication enforcement.
The final configuration revolves around device compliance rather than authentication. Intune Device Compliance Policies determine whether devices meet certain standards such as OS version, encryption status, antivirus presence, and security settings. These policies can be integrated with Conditional Access to ensure only compliant devices gain access. However, they do not regulate how users authenticate. Device compliance does not enforce MFA or passwordless authentication and does not manage which methods can or cannot be used during sign-in. Its scope is limited to endpoint posture and does not fulfill identity protection requirements.
In evaluating all methods, Authentication Strengths within Conditional Access uniquely provide the ability to mandate specific phishing-resistant authentication methods, including full FIDO2 enforcement. It ensures legacy protocols cannot bypass authentication requirements and provides robust alignment with identity-based zero-trust principles.
Thus, the correct configuration is Authentication Strengths in Conditional Access.
Question 40
Your company requires that all applications accessing Microsoft 365 must use modern authentication. Legacy protocols such as POP, IMAP, and SMTP Basic must be fully blocked tenant-wide to ensure that no user or device can authenticate using outdated mechanisms. You need to implement the most effective method to enforce this requirement.
A) Disable legacy authentication using Conditional Access
B) Configure Exchange Online mail flow rules
C) Apply Intune compliance policies to all users
D) Create an Azure AD Password Protection policy
Answer: A) Disable legacy authentication using Conditional Access
Explanation;
Enforcing modern authentication across an entire tenant requires a solution that evaluates sign-ins at the identity layer and blocks any protocol that does not support modern authentication. Different Microsoft 365 tools assist with identity security, device compliance, mail flow, or password strength, but not all of them participate directly in protocol enforcement. Understanding the role each tool plays is essential for identifying which approach guarantees that legacy authentication cannot be used under any circumstances.
The first configuration is the method specifically designed to evaluate authentication flows and ensure that legacy methods cannot bypass controls. By disabling legacy authentication using Conditional Access, the organization prevents any connection attempt from using basic authentication protocols, which include IMAP, POP, SMTP Basic, MAPI over HTTP, and older authentication stacks used by outdated clients. Conditional Access inspects every sign-in request and determines whether the protocol supports modern authentication. If the request is recognized as a legacy authentication attempt, access is blocked immediately. This approach ensures tenant-wide enforcement without depending on user settings, device policies, or application updates. It applies consistently across all apps integrated with Azure Active Directory and eliminates vulnerabilities associated with legacy protocol use.
The second configuration manages email behavior within the messaging system, not authentication itself. Mail flow rules in Exchange Online evaluate email content, headers, sender identity, and routing actions as messages transit through the service. These rules do not examine how a user authenticates when connecting to Microsoft 365. Mail flow rules simply cannot block authentication attempts or enforce modern authentication capabilities. They operate after authentication occurs and therefore cannot be used to eliminate legacy authentication across the tenant. Even a fully configured set of rules would not influence user connections or protocol usage.
The third configuration focuses on device health and compliance rather than authentication method evaluation. Intune compliance policies assess whether devices meet specific organizational standards such as encryption status, minimum operating system version, security baselines, antivirus state, and more. While compliance policies can contribute to zero-trust enforcement when paired with Conditional Access, they do not regulate which authentication protocol a user or application uses. A device could be fully compliant yet still attempt to authenticate using a legacy protocol if allowed. Compliance policies cannot block authentication attempts or enforce which protocol must be used, and therefore cannot fulfill the requirement to eliminate legacy authentication.
The fourth configuration addresses password security rather than protocol enforcement. Azure AD Password Protection prevents the use of weak or banned passwords and enforces high-strength password creation rules across the tenant. While password protection is important for safeguarding identity, it does not analyze authentication protocols and cannot distinguish between modern authentication and legacy authentication. A strong password can still be used with outdated protocols if those protocols are left enabled. Thus, even though password protection contributes to improved security posture, it does not meet the requirement of blocking legacy protocols.
When comparing all methods, the only technique that directly interacts with authentication protocol evaluation is disabling legacy authentication using Conditional Access. This control specifically targets outdated mechanisms and ensures that every request adheres to modern authentication standards. It blocks unauthenticated attempts before access is granted, provides tenant-wide coverage, and prevents bypass attempts often exploited by automated attacks. The other methods either operate after authentication, focus on device posture, or enhance password quality but do not influence which protocol is used during sign-in.
Thus, disabling legacy authentication using Conditional Access is the correct method to enforce modern authentication requirements.
Question 41
A company wants to enforce strict application access security by requiring that only approved, compliant devices can connect to Microsoft 365 apps. Users should be denied access when connecting from personal or non-managed devices unless they meet compliance requirements. You must implement a method that integrates device posture into access decisions.
A) Conditional Access with device compliance requirements
B) SharePoint sharing settings
C) Microsoft Purview retention labels
D) Exchange Online transport rules
Answer: A) Conditional Access with device compliance requirements
Explanation
Managing access based on device posture is a core requirement in a zero-trust environment. Ensuring that only compliant devices can access cloud resources protects organizational data against unauthorized access and prevents vulnerable or unmanaged devices from connecting. Achieving this requires identity-aware and device-aware enforcement at sign-in. Comparing the functionality of each configuration reveals which one meets the requirement.
The first configuration creates a unified enforcement model that incorporates device compliance signals from Intune and evaluates access through Conditional Access. When Conditional Access requires device compliance, access is granted only if the device meets the compliance standards defined in Intune. Compliance can include encryption, OS version, security baseline configuration, antivirus presence, and other posture-related criteria. If a user attempts to sign in from a personal device, unregistered device, jailbroken device, or non-managed device, access is blocked unless it meets compliance. This approach integrates deeply with identity and device management and applies at authentication time, making it a precise match for the requirement.
The second configuration governs document sharing, not authentication or device posture enforcement. SharePoint sharing settings determine whether content can be shared externally, whether anonymous links are allowed, and what sharing restrictions apply. These settings do not block app access based on device health or compliance status. They operate within SharePoint rather than across the entire Microsoft 365 environment and cannot evaluate device posture or enforce compliance for app access. This means the requirement of restricting Microsoft 365 access to compliant devices cannot be met using this method.
The third configuration provides data governance through retention, deletion, and lifecycle management. Retention labels define how long data should be kept, when it should be deleted, and what regulatory or business rules apply. They do not participate in authentication or access enforcement, nor do they evaluate device compliance. Even the advanced capabilities within Purview are aimed at content governance rather than device-based access enforcement. Therefore, retention labels cannot control whether a user can access apps from a personal or non-compliant device.
The fourth configuration impacts email movement rather than application access. Exchange Online transport rules evaluate emails during transmission and apply actions such as routing, redirection, disclaimers, or blocking based on message characteristics. These rules cannot evaluate device posture and do not regulate how users authenticate or which devices they use. Transport rules apply only to email flow and not to app-level access across Microsoft 365.
In comparison, Conditional Access with device compliance requirements is the only method that integrates authentication evaluation with device health assessment. It ensures that only registered, secure, and compliant devices can access cloud resources while blocking unmanaged or personal devices. This method fulfills the requirement precisely.
Thus, Conditional Access with device compliance requirements is the correct solution.
Question 42
A company requires automated identification and mitigation of risky user behavior. The solution must detect unusual sign-in locations, impossible travel, atypical behavior, and credential compromise indicators. It must also automatically enforce remediation actions such as password reset or blocking access. You need to choose the most appropriate Microsoft 365 capability.
A) Azure AD Identity Protection
B) SharePoint sensitivity policies
C) Intune device configuration profiles
D) Microsoft Defender Antivirus
Answer: A) Azure AD Identity Protection
Explanation
Identifying risky sign-ins, detecting suspicious behavior, and enforcing automated remediation require advanced behavioral analytics operating at the identity layer. Various Microsoft tools contribute to organizational security, but only one is designed specifically for detecting and remediating identity risks. Understanding the capabilities of each option is essential for determining which aligns with the requirements.
The first configuration analyzes user behavior patterns, sign-in context, historical activity, and machine-learning-based indicators to detect potential compromise. Azure AD Identity Protection identifies risky sign-ins, impossible travel, atypical access patterns, credential leakage indicators, and unusual authentication locations. It assigns risk levels and allows automated remediation through risk-based Conditional Access policies. The system can enforce actions such as requiring password reset, blocking access, or prompting additional verification steps. This aligns directly with the need for automated detection and response, providing continuous monitoring of identity behavior and applying real-time mitigation.
The second configuration deals with data classification rather than identity behavior. SharePoint sensitivity policies help classify, label, and protect content within SharePoint libraries. While these policies contribute to data governance, they do not analyze sign-ins, detect unusual activity, or enforce risk-based mitigation actions. Their purpose is content protection, not behavioral analytics or automated identity threat response. They cannot evaluate unusual sign-in locations, impossible travel, or credential compromise indicators.
The third configuration manages device settings rather than user behavior. Intune device configuration profiles apply OS-level settings to corporate devices, such as Wi-Fi profiles, restrictions, certificates, and security configurations. While these profiles improve device posture, they do not evaluate user sign-ins, detect compromised identities, or apply identity-based remediation. Device configuration cannot identify risky behavior or enforce actions such as password reset based on identity threat indicators.
The fourth configuration focuses on endpoint malware prevention. Microsoft Defender Antivirus identifies malicious files, prevents malware execution, and performs threat scanning on devices. Although essential to device security, it does not detect identity compromise, unusual sign-ins, impossible travel, or credential abuse. Antivirus operates at the device level, not the identity layer, and therefore cannot automate identity risk remediation.
Only Azure AD Identity Protection offers machine-learning-driven risk detection, identity threat evaluation, and automated remediation aligned with the requirements. It assesses sign-ins and user behavior, assigns risk scores, and works with Conditional Access policies to enforce actions when threats are detected.
Thus, Azure AD Identity Protection is the correct answer.
Question 43
A company wants to ensure that users can only access Microsoft 365 apps from compliant devices. Non-compliant or personal devices should be blocked, but users on unmanaged devices must still be able to view content through a secure browser session. Which combination of features should the administrator configure?
A) Conditional Access with device compliance and Conditional Access App Control
B) Exchange Online Retention Policies and Intune Compliance Policies
C) SharePoint Sharing Settings and Microsoft Purview DLP Policies
D) Azure AD Password Protection and Intune Device Compliance
Answer: A) Conditional Access with device compliance and Conditional Access App Control
Explanation
Organizations increasingly adopt zero-trust principles to secure access to cloud services, ensuring only authorized users and secure devices can access sensitive data. The requirement here combines device compliance enforcement with the ability to allow secure access through a managed browser session for users on non-compliant devices. This scenario demands a solution that evaluates both user identity and device posture in real time while applying dynamic session controls.
Conditional Access with device compliance evaluates whether the device meets corporate security standards before granting access to Microsoft 365 apps. Compliance signals are generated by Intune, which can assess encryption status, OS version, security updates, antivirus presence, and other critical criteria. If a device is compliant, full access is granted. If a device is non-compliant, access is blocked or limited. This mechanism ensures only trusted devices can gain full access to resources, mitigating the risk of data leakage from insecure endpoints. Conditional Access policies also integrate seamlessly with other security measures, such as Multi-Factor Authentication (MFA), risk-based access, and Named Locations, providing layered protection against unauthorized access.
Conditional Access App Control extends these capabilities by providing real-time session-level enforcement using Microsoft Defender for Cloud Apps. With this integration, administrators can allow users to access apps from unmanaged or non-compliant devices within a secure browser session, often referred to as a “reverse proxy” or “cloud app proxy” session. In this session, access can be limited to viewing content, preventing downloads, copying, or printing sensitive information. This approach enables secure access without compromising compliance standards, which is essential for BYOD scenarios or temporary device access needs. The combination of Conditional Access for device compliance and App Control ensures that access policies are both preventive and adaptive, providing granular controls over who can access data and under what circumstances.
Exchange Online Retention Policies focus on data lifecycle management, specifying how long emails or documents are retained or when they are deleted. While critical for regulatory compliance and organizational recordkeeping, retention policies do not enforce access based on device compliance or session security. They operate post-authentication and only control content retention, not access restrictions.
SharePoint Sharing Settings and Microsoft Purview Data Loss Prevention (DLP) Policies protect content and prevent unauthorized sharing. While DLP can block sensitive content from leaving the organization and sharing settings can restrict external access, they do not enforce device compliance or session-level access restrictions. They focus on protecting content rather than enforcing access conditions based on device health or identity evaluation.
Azure AD Password Protection enhances password security by enforcing banned password lists and strength requirements. Intune Device Compliance evaluates device health but does not dynamically enforce secure session access for non-compliant devices. These two combined cannot provide the full solution of secure browser access for non-compliant endpoints while enforcing compliance-based access controls.
By integrating Conditional Access with device compliance and Conditional Access App Control, organizations can enforce zero-trust principles, allowing only compliant devices full access while providing limited, secure access to users on non-compliant devices. This strategy maintains security without compromising productivity, provides visibility into device compliance status, and leverages cloud-scale intelligence to reduce risk. Administrators can configure granular policies, monitor real-time activity, and ensure continuous compliance while supporting secure collaboration and flexibility across diverse devices and locations.
Question 44
A company wants to automatically classify and protect all emails that contain credit card information. Users should be notified when sending sensitive information, and messages must be encrypted automatically. Which Microsoft 365 feature should the administrator configure?
A) Microsoft 365 Data Loss Prevention (DLP) Policies
B) Exchange Online Retention Policies
C) Microsoft Intune Device Compliance
D) Conditional Access App Control
Answer: A) Microsoft 365 Data Loss Prevention (DLP) Policies
Explanation
Protecting sensitive information, such as credit card numbers, requires policies that can inspect content in real time and enforce automated protective actions. Microsoft 365 Data Loss Prevention (DLP) provides comprehensive capabilities for identifying, classifying, and protecting sensitive information across Microsoft 365 workloads, including Exchange Online, SharePoint Online, OneDrive, and Teams. DLP uses predefined sensitive information types, such as credit card numbers, Social Security numbers, or financial account data, to automatically detect sensitive content in messages or documents. Administrators can create policies that not only detect this content but also take proactive measures such as blocking the email from being sent, encrypting it, or notifying the sender of the risk.
When DLP policies are configured for email, administrators can set up policy tips that alert users when their message contains sensitive information. This real-time notification educates users on organizational data protection requirements and reduces accidental data exposure. The system can also automatically enforce encryption, ensuring that messages containing credit card information are unreadable to unauthorized recipients. Encryption can leverage Office 365 Message Encryption (OME) and integrates with Microsoft Purview sensitivity labels for consistent data protection. By applying these controls, DLP helps organizations maintain regulatory compliance, such as PCI DSS, while also mitigating the risk of data leaks.
Exchange Online Retention Policies focus on managing content lifecycle, defining how long emails or documents are retained or deleted. Retention policies do not inspect the content for sensitive information, nor do they automatically enforce encryption or notify users of policy violations. Retention is important for compliance but does not proactively prevent data leakage.
Microsoft Intune Device Compliance evaluates the security posture of endpoints, ensuring that devices meet standards such as encryption, antivirus, or OS version requirements. Device compliance does not inspect email content or enforce encryption based on sensitive data presence. While it enhances device security, it cannot protect credit card information in messages sent outside the organization.
Conditional Access App Control monitors and controls access to cloud applications in real time, allowing session-based restrictions such as blocking downloads or printing. However, it does not classify or detect content within emails. App Control is effective for managing session-level actions but cannot enforce automated protection for sensitive information like credit card numbers in outgoing email.
DLP provides a proactive, automated, and scalable solution for sensitive content protection. It allows organizations to implement rules that trigger actions based on the type of data detected, recipient, or location of transmission. Administrators can review reports and audit logs to ensure compliance and adjust policies as needed. DLP integrates seamlessly with other Microsoft 365 security and compliance tools, ensuring consistent protection across workloads. This approach balances security, user education, and regulatory compliance while minimizing disruption to normal business processes. For scenarios involving sensitive information in emails, DLP policies are the definitive solution, as they allow detection, protection, notification, and encryption in a unified framework.
Question 45
A company wants to enforce MFA for all users, but administrators must be exempt from standard MFA prompts and instead use stricter authentication methods, such as FIDO2 keys or certificate-based authentication. Which Microsoft 365 feature allows you to enforce this policy selectively?
A) Conditional Access with Authentication Strengths
B) Microsoft Intune Device Compliance
C) Microsoft Purview DLP Policies
D) Exchange Online Retention Policies
Answer: A) Conditional Access with Authentication Strengths
Explanation :
Implementing multi-factor authentication selectively while providing stronger authentication for privileged accounts requires an identity-aware solution that supports granular, adaptive, and role-specific controls. Azure AD Conditional Access combined with Authentication Strengths delivers exactly this level of precision, making it possible for organizations to tailor authentication requirements depending on the sensitivity of the account, the role of the user, the application being accessed, and the risk present during the sign-in attempt. This approach supports modern zero-trust security principles by ensuring that authentication is both contextual and proportional to the level of privilege involved.
Authentication Strengths in Azure AD allow administrators to define the specific authentication methods that are acceptable for different user groups. This is useful because not all authentication methods offer the same level of security. For example, standard users may be permitted to use common MFA methods such as authenticator app notifications or SMS codes. These methods provide a reasonable level of protection for everyday users without introducing unnecessary friction. However, privileged accounts require stronger safeguards because they are frequently targeted by advanced threat actors. For such accounts, administrators can enforce phishing-resistant authentication methods, including FIDO2 security keys, certificate-based authentication, or Windows Hello for Business. These methods are significantly more secure and are designed to withstand common identity attacks such as phishing, MFA fatigue, and credential replay.
When Conditional Access policies are combined with Authentication Strengths, Azure AD evaluates multiple identity and access signals in real time. These signals include user identity, group membership, device compliance status, network location, session risk, and sign-in risk. Based on these conditions, the policy determines which authentication method the user must complete to successfully sign in. This dynamic and automated enforcement ensures that higher-risk or higher-sensitivity scenarios always trigger stricter authentication requirements, while lower-risk scenarios can allow more flexible authentication options. As a result, privileged accounts receive the security they need, while standard users maintain productivity and usability.
Microsoft Intune Device Compliance, while valuable for ensuring that devices meet organizational security baselines, does not provide the ability to manage or configure authentication methods. Device compliance policies can block access from noncompliant devices, but they cannot differentiate authentication requirements between administrators and standard users. They also cannot enforce phishing-resistant MFA, meaning they are insufficient as a stand-alone solution for identity-focused controls.
Similarly, Microsoft Purview DLP Policies do not influence authentication. Their purpose is to identify and protect sensitive content across services such as Exchange, SharePoint, and OneDrive. While DLP plays an important role in data security, it does not govern authentication flows or MFA requirements, nor does it support differentiating privileged users from regular users.
Exchange Online Retention Policies are entirely content-driven and focused on data lifecycle management. These policies determine how long data is stored, when it is deleted, and how it is preserved for compliance. They do not control authentication or access security and therefore cannot enforce stronger MFA requirements for administrators.
Conditional Access with Authentication Strengths provides the necessary precision and control for differentiated authentication enforcement. It creates a security model that adapts to user roles, risk levels, and organizational needs. Through detailed logging and reporting, administrators can audit authentication events and ensure compliance with internal and external requirements. This unified, context-aware approach strengthens identity protection, mitigates phishing and credential-theft risks, and supports zero-trust strategies without hindering the productivity of standard users.