When a client sends a request to a server, the server first checks if the client is authenticated. If the client is not authenticated, the server responds with 401 Unauthorized, meaning the client must provide valid credentials. If the client is authenticated but does not have permission to access the requested resource, the server responds with 403 Forbidden. This means the client is recognized but not allowed to proceed. The execution flow shows that authentication is checked first, and if it fails, the server stops and returns 401. Authorization is only checked if authentication succeeds. Variables like authentication status and response code change accordingly during these steps. Understanding this helps developers correctly handle access control in APIs.