- A
Assign the Reader role to the Auditors group at the Corp management group scope.
A Reader assignment at the management group scope inherits to every child subscription and resource below it. That is the narrowest scope that still covers all current and future subscriptions under Corp.
- B
Assign the Reader role directly to every subscription under Corp.
Why wrong: This would work only after every subscription is configured individually. It also creates extra administrative work and does not automatically cover new subscriptions added later.
- C
Assign the Reader role to the Auditors group at one resource group scope.
Why wrong: A resource group assignment is too narrow. It would not grant visibility across all subscriptions under the management group, only that single resource group.
- D
Add the intended users to the Auditors Entra ID group.
Using an Entra ID group lets the administrator manage membership once and have access change automatically for all role assignments tied to that group.
- E
Create an Azure Policy assignment to grant read access to all subscriptions.
Why wrong: Azure Policy evaluates compliance and controls configuration behavior, but it does not grant Azure RBAC permissions or provide read access.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
An enterprise has a management group named Corp that contains all production and sandbox subscriptions. An Entra ID group named Auditors must be able to read resources in every current subscription under Corp and in any subscription added later. Which two actions should the administrator take? Select two.
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
Assign the Reader role to the Auditors group at the Corp management group scope.
Assigning the Reader role at the Corp management group scope ensures that the Auditors group inherits read permissions to all current and future subscriptions under Corp, because Azure RBAC permissions assigned at a management group are inherited by all child subscriptions and resource groups. This meets the requirement for both existing and future subscriptions without manual updates.
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.
- ✓
Assign the Reader role to the Auditors group at the Corp management group scope.
Why this is correct
A Reader assignment at the management group scope inherits to every child subscription and resource below it. That is the narrowest scope that still covers all current and future subscriptions under Corp.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Assign the Reader role directly to every subscription under Corp.
Why it's wrong here
This would work only after every subscription is configured individually. It also creates extra administrative work and does not automatically cover new subscriptions added later.
- ✗
Assign the Reader role to the Auditors group at one resource group scope.
Why it's wrong here
A resource group assignment is too narrow. It would not grant visibility across all subscriptions under the management group, only that single resource group.
- ✓
Add the intended users to the Auditors Entra ID group.
Why this is correct
Using an Entra ID group lets the administrator manage membership once and have access change automatically for all role assignments tied to that group.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create an Azure Policy assignment to grant read access to all subscriptions.
Why it's wrong here
Azure Policy evaluates compliance and controls configuration behavior, but it does not grant Azure RBAC permissions or provide read access.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy (which enforces compliance rules) with Azure RBAC (which grants permissions), leading candidates to incorrectly select Option E instead of recognizing that RBAC assignments at the management group scope are the correct method for inheritance across all subscriptions.
Detailed technical explanation
How to think about this question
Management groups in Azure form a hierarchy above subscriptions, and RBAC role assignments at the management group level are inherited by all descendant subscriptions and resource groups via the Azure Resource Manager hierarchy. This inheritance is evaluated at runtime, meaning new subscriptions added to the Corp management group automatically receive the Reader role assignment without any additional configuration. The Auditors group must be an Entra ID security group, and users must be added to it (Option D) to receive the permissions.
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.
- →
Manage Azure Identities and Governance — study guide chapter
Learn the concepts, then practise the questions
- →
Manage Azure Identities and Governance practice questions
Targeted practice on this topic area only
- →
All AZ-104 questions
1,170 questions across all exam domains
- →
AZ-104 study guide
Full concept coverage aligned to exam objectives
- →
AZ-104 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related AZ-104 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Manage Azure Identities and Governance practice questions
Practise AZ-104 questions linked to Manage Azure Identities and Governance.
Implement and Manage Storage practice questions
Practise AZ-104 questions linked to Implement and Manage Storage.
Deploy and Manage Azure Compute practice questions
Practise AZ-104 questions linked to Deploy and Manage Azure Compute.
Implement and Manage Virtual Networking practice questions
Practise AZ-104 questions linked to Implement and Manage Virtual Networking.
Monitor and Maintain Azure Resources practice questions
Practise AZ-104 questions linked to Monitor and Maintain Azure Resources.
AZ-104 Azure RBAC practice questions
Practise AZ-104 questions linked to AZ-104 Azure RBAC.
AZ-104 storage account practice questions
Practise AZ-104 questions linked to AZ-104 storage account.
AZ-104 virtual network practice questions
Practise AZ-104 questions linked to AZ-104 virtual network.
AZ-104 NSG practice questions
Practise AZ-104 questions linked to AZ-104 NSG.
AZ-104 Azure Monitor practice questions
Practise AZ-104 questions linked to AZ-104 Azure Monitor.
AZ-104 backup practice questions
Practise AZ-104 questions linked to AZ-104 backup.
AZ-104 managed identity practice questions
Practise AZ-104 questions linked to AZ-104 managed identity.
Practice this exam
Start a free AZ-104 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
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: Assign the Reader role to the Auditors group at the Corp management group scope. — Assigning the Reader role at the Corp management group scope ensures that the Auditors group inherits read permissions to all current and future subscriptions under Corp, because Azure RBAC permissions assigned at a management group are inherited by all child subscriptions and resource groups. This meets the requirement for both existing and future subscriptions without manual updates.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.