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AZ-500 · Question #432

Hotspot Question You have an Azure SQL database named DB1 that contains a table named Tablet. You need to configure DB1 to meet the following requirements: - Sensitive data in Table1 must be…

The correct answer is Auditing = No; Ledger = No; Data Discovery & Classification = Yes; Dynamic Data Masking = Yes; Microsoft Defender for Cloud = No; Transparent data encryption = No; Performance overview = No; Performance recommendations = No; Query Performance Insight = No; Automatic tuning = No; Alerts = No; Metrics = No; Diagnostic settings = No; Logs = No. Azure SQL Security Features - Hotspot Explanation The Two Requirements 1. Auto-identify sensitive data -> Data Discovery & Classification 2. Show only first + last character in query results -> Dynamic Data Masking --- Statement-by-Statement Breakdown | # | Feature | Correct? |…

Submitted by sofia.br· Mar 6, 2026Secure compute, storage, and databases

Question

Hotspot Question You have an Azure SQL database named DB1 that contains a table named Tablet. You need to configure DB1 to meet the following requirements: - Sensitive data in Table1 must be identified automatically. - Only the first character and last character of the sensitive data must be displayed in query results. Which two features should you configure? To answer, select the features in the answer area. NOTE: Each correct selection is worth one point. Answer:

Exhibit

AZ-500 question #432 exhibit

Answer Area

  • AuditingNo
  • LedgerNo
  • Data Discovery & ClassificationYes
  • Dynamic Data MaskingYes
  • Microsoft Defender for CloudNo
  • Transparent data encryptionNo
  • Performance overviewNo
  • Performance recommendationsNo
  • Query Performance InsightNo
  • Automatic tuningNo
  • AlertsNo
  • MetricsNo
  • Diagnostic settingsNo
  • LogsNo

Explanation

Azure SQL Security Features - Hotspot Explanation

The Two Requirements

  1. Auto-identify sensitive data -> Data Discovery & Classification
  2. Show only first + last character in query results -> Dynamic Data Masking

Statement-by-Statement Breakdown

#FeatureCorrect?Why
1AuditingNoRecords who accessed what and when - tracking/logging, not identification or masking
2LedgerNoProvides tamper-evident, cryptographically verified history of data changes - integrity, not sensitivity
3Data Discovery & ClassificationYesAutomatically scans and labels columns containing sensitive data (PII, credit cards, etc.) using built-in rules
4Dynamic Data MaskingYesControls what data is displayed in query results - the "partial" mask shows first + last characters (prefix mask)
5Microsoft Defender for CloudNoThreat detection and security posture management - alerts on attacks, not column-level masking
6Transparent Data EncryptionNoEncrypts data at rest on disk - fully transparent to queries, no display effect
7Performance OverviewNoMonitoring dashboard - unrelated to data sensitivity
8Performance RecommendationsNoSuggests index/query improvements - unrelated
9Query Performance InsightNoAnalyzes slow queries - unrelated
10Automatic TuningNoAuto-applies index and plan optimizations - unrelated
11AlertsNoMetric-based notifications - unrelated to data masking
12MetricsNoCPU/DTU/storage telemetry - unrelated
13Diagnostic SettingsNoRoutes logs/metrics to Log Analytics or Storage - unrelated
14LogsNoActivity and resource logs - unrelated

Deep Dive: The Two Correct Features

Data Discovery & Classification

  • Scans your database and recommends sensitivity labels (e.g., Confidential, Highly Confidential)
  • Labels persist as metadata on the column
  • Keyword: "identified automatically"

Dynamic Data Masking

  • Does not encrypt - data is stored in plain text, but masked at query time for non-privileged users
  • The "Custom String" mask lets you configure prefix + suffix characters, which is exactly "first and last character visible"
  • Built-in mask types: Default, Email, Random, Custom String
  • Keyword: "displayed in query results"

Memory Tips

"Classify to find it, Mask to hide it"

  • Discovery & Classification = find sensitive columns
  • Dynamic Data Masking = hide (partially) what's returned

TDE vs DDM confusion: TDE = data encrypted on disk (at rest), invisible to queries. DDM = data looks different in query results to certain users.

Auditing vs Classification: Auditing answers "who touched it?" - Classification answers "what IS it?"

Topics

#Azure SQL Database#Data Security#Data Discovery & Classification#Dynamic Data Masking

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