diff --git a/deploy/templates/_helpers.tpl b/deploy/templates/_helpers.tpl
index 0f40c4e..088d547 100644
--- a/deploy/templates/_helpers.tpl
+++ b/deploy/templates/_helpers.tpl
@@ -49,7 +49,7 @@ Selector labels
 app.kubernetes.io/name: {{ include "az-appconfig-k8s-provider.name" . }}
 app.kubernetes.io/instance: {{ .Release.Name }}
 control-plane: controller-manager
-{{- if eq .Values.workloadIdentity.enabled true }}
+{{- if and (.Values.workloadIdentity.enabled) (not .Values.workloadIdentity.disableGlobalServiceAccount) }}
 azure.workload.identity/use: "true"
 {{- end }}
 {{- end }}
diff --git a/deploy/templates/clusterrole.yaml b/deploy/templates/clusterrole.yaml
index 23f259a..64bffcb 100644
--- a/deploy/templates/clusterrole.yaml
+++ b/deploy/templates/clusterrole.yaml
@@ -53,7 +53,7 @@ rules:
   - patch
   - update
   - watch
-{{- if eq .Values.workloadIdentity.enabled true }}
+{{- if .Values.workloadIdentity.enabled }}
 - apiGroups:
   - ""
   resources:
diff --git a/deploy/templates/serviceaccount.yaml b/deploy/templates/serviceaccount.yaml
index cf835e9..c036964 100644
--- a/deploy/templates/serviceaccount.yaml
+++ b/deploy/templates/serviceaccount.yaml
@@ -9,7 +9,7 @@ metadata:
     {{- if .Values.serviceAccount.annotations }}
     {{ toYaml .Values.serviceAccount.annotations . | nindent 4 }}
     {{- end }}
-    {{- if eq .Values.workloadIdentity.enabled true }}
+    {{- if and (.Values.workloadIdentity.enabled) (not .Values.workloadIdentity.disableGlobalServiceAccount) }}
     azure.workload.identity/client-id: ""
     {{- end }}
 {{- end }}
\ No newline at end of file
diff --git a/internal/controller/utils.go b/internal/controller/utils.go
index 3459003..104f774 100644
--- a/internal/controller/utils.go
+++ b/internal/controller/utils.go
@@ -248,14 +248,14 @@ func verifyWorkloadIdentityParameters(workloadIdentity *acpv1.WorkloadIdentityPa
 
 	if workloadIdentity.ManagedIdentityClientId != nil {
 		if strings.EqualFold(os.Getenv(WorkloadIdentityDisableGlobalServiceAccount), "true") {
-			return loader.NewArgumentError("auth.workloadIdentity.managedIdentityClientId", fmt.Errorf("managedIdentityClientId is not allowed since only custom service account is allowed"))
+			return loader.NewArgumentError("auth.workloadIdentity.managedIdentityClientId", fmt.Errorf("'managedIdentityClientId' is not allowed since global service account is disabled"))
 		}
 		authCount++
 	}
 
 	if workloadIdentity.ManagedIdentityClientIdReference != nil {
 		if strings.EqualFold(os.Getenv(WorkloadIdentityDisableGlobalServiceAccount), "true") {
-			return loader.NewArgumentError("auth.workloadIdentity.managedIdentityClientIdReference", fmt.Errorf("managedIdentityClientIdReference is not allowed since only custom service account is allowed"))
+			return loader.NewArgumentError("auth.workloadIdentity.managedIdentityClientIdReference", fmt.Errorf("'managedIdentityClientIdReference' is not allowed since global service account is disabled"))
 		}
 		authCount++
 	}
@@ -265,11 +265,11 @@ func verifyWorkloadIdentityParameters(workloadIdentity *acpv1.WorkloadIdentityPa
 	}
 
 	if authCount == 0 {
-		return loader.NewArgumentError("auth.workloadIdentity", fmt.Errorf("one of managedIdentityClientId, managedIdentityClientIdReference and serviceAccountName is required"))
+		return loader.NewArgumentError("auth.workloadIdentity", fmt.Errorf("setting one of 'managedIdentityClientId', 'managedIdentityClientIdReference' or 'serviceAccountName' field is required"))
 	}
 
 	if authCount > 1 {
-		return loader.NewArgumentError("auth.workloadIdentity", fmt.Errorf("only one of managedIdentityClientId, managedIdentityClientIdReference and serviceAccountName is allowed"))
+		return loader.NewArgumentError("auth.workloadIdentity", fmt.Errorf("setting only one of 'managedIdentityClientId', 'managedIdentityClientIdReference' or 'serviceAccountName' field is allowed"))
 	}
 
 	if workloadIdentity.ManagedIdentityClientId != nil {
diff --git a/internal/loader/configuration_client_manager.go b/internal/loader/configuration_client_manager.go
index c2e23a9..dadc7a1 100644
--- a/internal/loader/configuration_client_manager.go
+++ b/internal/loader/configuration_client_manager.go
@@ -75,7 +75,7 @@ const (
 	MinBackoffDuration                  time.Duration = time.Second * 30
 	JitterRatio                         float64       = 0.25
 	SafeShiftLimit                      int           = 63
-	AzureDefaultAudience                string        = "api://AzureADTokenExchange"
+	ApiTokenExchangeAudience            string        = "api://AzureADTokenExchange"
 	AnnotationClientID                  string        = "azure.workload.identity/client-id"
 	AnnotationTenantID                  string        = "azure.workload.identity/tenant-id"
 )
@@ -493,17 +493,18 @@ func newClientAssertionCredential(ctx context.Context, serviceAccountName string
 		return nil, err
 	}
 
-	tenantId, ok := os.LookupEnv(strings.ToUpper(AzureTenantId))
-	if !ok {
-		return nil, fmt.Errorf("no tenant ID specified. Check pod configuration or set TenantID in the options")
-	}
-
 	if _, ok := serviceAccountObj.Annotations[AnnotationClientID]; !ok {
-		return nil, fmt.Errorf("service account %s/%s does not have annotation %s", serviceAccountNamespace, serviceAccountName, AnnotationClientID)
+		return nil, fmt.Errorf("annotation '%s' of service account %s/%s is required", AnnotationClientID, serviceAccountNamespace, serviceAccountName)
 	}
 
+	tenantId := ""
+
 	if _, ok := serviceAccountObj.Annotations[AnnotationTenantID]; ok {
 		tenantId = serviceAccountObj.Annotations[AnnotationTenantID]
+	} else if _, ok := os.LookupEnv(strings.ToUpper(AzureTenantId)); ok {
+		tenantId = os.Getenv(strings.ToUpper(AzureTenantId))
+	} else {
+		return nil, fmt.Errorf("annotation '%s' of service account %s/%s is required since using global service account for workload identity is disabled", AnnotationTenantID, serviceAccountNamespace, serviceAccountName)
 	}
 
 	getAssertionFunc := newGetAssertionFunc(serviceAccountNamespace, serviceAccountName)
@@ -517,7 +518,7 @@ func newClientAssertionCredential(ctx context.Context, serviceAccountName string
 }
 
 func newGetAssertionFunc(serviceAccountNamespace string, serviceAccountName string) func(ctx context.Context) (string, error) {
-	audiences := []string{AzureDefaultAudience}
+	audiences := []string{ApiTokenExchangeAudience}
 
 	return func(ctx context.Context) (string, error) {
 		cfg, err := ctrlcfg.GetConfig()