- A
Create a remediation task for the policy assignment.
A remediation task tells Azure Policy to apply the modify operation to resources that already exist. Without remediation, existing noncompliant resources may remain unchanged.
- B
Verify that the policy assignment identity has permission to modify tags at the assigned scope.
Modify policies use an identity to make changes on behalf of the assignment. That identity must have rights such as Contributor or a tag-specific write capability at the target scope.
- C
Reassign the policy at the resource group scope only.
Why wrong: Changing scope might not be necessary and does not address the missing remediation action. The issue is that existing resources need to be processed, not merely reassigned.
- D
Switch the policy effect to AuditIfNotExists.
Why wrong: AuditIfNotExists reports compliance status but does not change resources. It would not add the missing tag to the existing VMs.
- E
Manually tag only the newest virtual machines.
Why wrong: Manual tagging is inconsistent and does not scale. It also bypasses the governance objective of using policy to remediate existing noncompliant resources.
Quick Answer
The correct actions are to trigger a remediation task and verify that the managed identity assigned to the policy has the necessary permissions to modify tags at the assigned scope. This is because a policy with the Modify effect only applies to new resources by default; existing non-compliant resources require a remediation task to be manually initiated, which uses the policy assignment’s managed identity to perform the tag updates. On the AZ-104 exam, this tests your understanding of how remediation tasks bridge the gap between policy assignment and existing resources, a common trap being that candidates assume the Modify effect automatically retrofits tags. Remember the memory tip: "New gets the tag, old needs a nudge—remediation and identity trust."
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. Examine the command output carefully: the correct answer depends on what the output actually shows, not on general recall alone. 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 administrator assigned a policy definition with the Modify effect to add tag Environment=Prod to resources in a subscription. Existing VMs still do not show the tag. Which two actions should the administrator take to bring the existing VMs into compliance? 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
Create a remediation task for the policy assignment.
A is correct because a policy with the Modify effect does not automatically apply to existing non-compliant resources; a remediation task must be triggered to evaluate and update those resources. Remediation uses the managed identity assigned to the policy to perform the modification, which is why verifying that identity has the necessary permissions (option B) is also required. Without remediation, only new resources created after the policy assignment will have the tag applied.
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.
- ✓
Create a remediation task for the policy assignment.
Why this is correct
A remediation task tells Azure Policy to apply the modify operation to resources that already exist. Without remediation, existing noncompliant resources may remain unchanged.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Verify that the policy assignment identity has permission to modify tags at the assigned scope.
Why this is correct
Modify policies use an identity to make changes on behalf of the assignment. That identity must have rights such as Contributor or a tag-specific write capability at the target scope.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Reassign the policy at the resource group scope only.
Why it's wrong here
Changing scope might not be necessary and does not address the missing remediation action. The issue is that existing resources need to be processed, not merely reassigned.
- ✗
Switch the policy effect to AuditIfNotExists.
Why it's wrong here
AuditIfNotExists reports compliance status but does not change resources. It would not add the missing tag to the existing VMs.
- ✗
Manually tag only the newest virtual machines.
Why it's wrong here
Manual tagging is inconsistent and does not scale. It also bypasses the governance objective of using policy to remediate existing noncompliant resources.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume the Modify effect automatically applies to existing resources, but in reality, it only affects new resources unless a remediation task is explicitly created.
Detailed technical explanation
How to think about this question
The Modify effect in Azure Policy uses a 'deployIfNotExists' engine under the hood, requiring a system-assigned or user-assigned managed identity with Contributor or equivalent rights at the target scope to perform the modification. Remediation tasks are asynchronous and can be triggered via the Azure portal, CLI, or PowerShell (e.g., `Start-AzPolicyRemediation`), and they evaluate all existing resources against the policy definition, applying the defined modifications to non-compliant ones. A common real-world scenario is tagging cost centers or environments across hundreds of VMs, where manual tagging is error-prone and remediation ensures consistent enforcement.
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.
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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: Create a remediation task for the policy assignment. — A is correct because a policy with the Modify effect does not automatically apply to existing non-compliant resources; a remediation task must be triggered to evaluate and update those resources. Remediation uses the managed identity assigned to the policy to perform the modification, which is why verifying that identity has the necessary permissions (option B) is also required. Without remediation, only new resources created after the policy assignment will have the tag applied.
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
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.
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