In Node.js Lambda, the handler is exported as 'exports.handler' and can be async.
Step 2: Check other options for correctness
function handler(event) { return 'Hello'; } is a function but not exported. module.exports = function(event) { return 'Hello'; } exports a function but not as 'handler'. lambda.handler = function(event) { return 'Hello'; } uses an undefined 'lambda' object.