- A
At each resource group in each subscription
Why wrong: This would work, but it is operationally inefficient and easy to miss future resource groups.
- B
At the management group scope
A role assignment at the management group scope inherits to all subscriptions and resources below it. Because the requirement includes both current and future subscriptions, the management group is the right place to assign Reader. This centralizes access management and avoids creating separate assignments for each subscription or resource group.
- C
At one subscription scope only
Why wrong: A single subscription assignment would not cover the other 11 subscriptions under the management group.
- D
At one resource scope in the first subscription
Why wrong: A resource-level assignment applies only to one resource and cannot satisfy access to every subscription.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company has 12 subscriptions under one management group. An external auditor needs Reader access to resources in every current and future subscription under that management group. Where should you assign the role?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
At the management group scope
Assigning the Reader role at the management group scope ensures that the external auditor inherits read-only access to all current and future subscriptions under that management group. Role assignments at the management group scope are inherited by all child subscriptions and resource groups, making it the single, scalable solution for the requirement.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
At each resource group in each subscription
Why it's wrong here
This would work, but it is operationally inefficient and easy to miss future resource groups.
- ✓
At the management group scope
Why this is correct
A role assignment at the management group scope inherits to all subscriptions and resources below it. Because the requirement includes both current and future subscriptions, the management group is the right place to assign Reader. This centralizes access management and avoids creating separate assignments for each subscription or resource group.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
At one subscription scope only
Why it's wrong here
A single subscription assignment would not cover the other 11 subscriptions under the management group.
- ✗
At one resource scope in the first subscription
Why it's wrong here
A resource-level assignment applies only to one resource and cannot satisfy access to every subscription.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think assigning the role at the subscription scope is sufficient, overlooking the requirement for future subscriptions, or they may incorrectly believe that management group scope assignments do not propagate to child subscriptions.
Detailed technical explanation
How to think about this question
Role assignments in Azure are inherited from the management group down through the subscription and resource group hierarchy, but not across management groups. The Reader role at the management group scope grants read permissions to all resources within that management group, including any new subscriptions added later, because Azure RBAC evaluates assignments at the highest applicable scope. This design aligns with Azure's hierarchical governance model, where management groups act as containers for policy and access control.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: At the management group scope — Assigning the Reader role at the management group scope ensures that the external auditor inherits read-only access to all current and future subscriptions under that management group. Role assignments at the management group scope are inherited by all child subscriptions and resource groups, making it the single, scalable solution for the requirement.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
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