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Still now, I thought that disabling user account(on AD as windows authentication is being used) would remove the user access and his profile, which would prevent accessing the SharePoint resources.

Does it correct? If not, what would the right way of disabling the user account? I dont want to remove the user's reference(like created by/modified by)..

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Yes, if a User is disabled at AD directory level and you have proper filters set in the User Profile then yes.

If user is disabled then user will not able to log in even though user have the correct permission. SharePoint performs authorization, not authentication. SharePoint asks IIS (and then Active Directory) to perform the authentication instead.

Either disabling the user from AD or removing it from SharePoint will revoke the user access.

As long as User Stays in the User Information List( hidden List) then everything will be intact.

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Yes, this is correct.

In our intranet we use disabling user to prevent unauthorized access. So the way this user references remain intact and guarantee the security of sensitive information.

Hope this helps you.

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