You do not have permision to view this directory or page using the credentials that you supplied.
This happened despite the fact the user is already authenticated via Active Directory.
There can be many causes to Access Denied error, but if you think you’ve already configured everything correctly from your web application, there might be a little detail that’s forgotten. Make sure you give the proper permission to Authenticated Users to access your web application directory.
Here are the steps I took to solve this issue.
Right-click on the directory where the web application is stored and select Properties and click on Security tab.
Click on Click on Edit…, then Add… button. Type in Authenticated Users in the Enter the object names to select., then Add button. Type in Authenticated Users in the Enter the object names to select.
Click OK and you should see Authenticated Users as one of the user names. Give proper permissions on the Permissions for Authenticated Users box on the lower end if they’re not checked already.
Click OK twice to close the dialog box. It should take effect immediately, but if you want to be sure, you can restart IIS for your web application.
Refresh your browser and it should display the web page now.
Hope this helps!