Yes, this example accurately describes an IdentityNow data flow for password changes in an Active Directory environment. When a user changes their password in IdentityNow, the request is sent to the virtual appliance, which then communicates with the IQService host. The IQService is responsible for making changes to Active Directory. This flow reflects the standard procedure for password management using IdentityNow with Active Directory, where the virtual appliance and IQService coordinate to complete the password change.

References:

SailPoint IdentityNow Password Management Documentation.

SailPoint IdentityNow IQService and Virtual Appliance Data Flow Guide.