- A
Assign the Reader role to the group at each subscription scope under Prod.
Why wrong: This would work for the subscriptions that exist today, but it creates ongoing administrative overhead. Any new subscription added under Prod would need another assignment, so it does not satisfy the requirement to avoid repeated work.
- B
Assign the Reader role to the group at the Corp management group scope.
Why wrong: That scope is too broad because it would include both Prod and Sandbox. The auditor would gain visibility beyond the requested boundary, which violates the requirement to exclude Sandbox resources.
- C
Assign the Reader role to the group at the Prod management group scope.
A role assignment at the Prod management group scope inherits to all subscriptions, resource groups, and resources beneath that management group, including future subscriptions placed there later. It also stays limited to Prod, so Sandbox remains outside the auditor's visibility.
- D
Assign the Reader role to the group at one resource group in each Prod subscription.
Why wrong: A resource-group assignment is too narrow and would miss the rest of each subscription. It also fails the requirement for future subscriptions because each new subscription would require manual assignments to multiple resource groups.
Quick Answer
The answer is to assign the Reader role to the group at the Prod management group scope. This is correct because management groups in Azure form a hierarchy that allows role assignments to be inherited by all child subscriptions and resources, meaning any new subscription added under Prod automatically receives the same read-only permissions without requiring separate assignments. On the AZ-104 exam, this scenario tests your understanding of Azure RBAC inheritance and management group scopes—a common trap is assigning the role at the root management group (Corp), which would grant access to Sandbox as well, or at the subscription level, which would not be future-proof. Remember the key principle: scope inheritance flows downward, so always assign at the highest necessary level that excludes unwanted branches. A useful memory tip is “scope down, lock out”—assign at the management group that covers only the resources you want, and the inheritance chain does the rest.
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. Corp contains two child management groups: Prod and Sandbox. A compliance auditor is a member of an Entra ID group and must have read-only access to every current and future resource in all subscriptions that are under Prod. The auditor must not see resources in Sandbox, and the admin does not want to maintain separate assignments for each new subscription. What should the administrator do?
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 group at the Prod management group scope.
Option C is correct because assigning the Reader role at the Prod management group scope applies that permission to all current and future subscriptions and resources within Prod, satisfying the requirement for read-only access without needing separate assignments. Management groups in Azure provide a hierarchical scope that inherits role assignments to all child subscriptions and resource groups, making this the most efficient and future-proof approach.
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 group at each subscription scope under Prod.
Why it's wrong here
This would work for the subscriptions that exist today, but it creates ongoing administrative overhead. Any new subscription added under Prod would need another assignment, so it does not satisfy the requirement to avoid repeated work.
- ✗
Assign the Reader role to the group at the Corp management group scope.
Why it's wrong here
That scope is too broad because it would include both Prod and Sandbox. The auditor would gain visibility beyond the requested boundary, which violates the requirement to exclude Sandbox resources.
- ✓
Assign the Reader role to the group at the Prod management group scope.
Why this is correct
A role assignment at the Prod management group scope inherits to all subscriptions, resource groups, and resources beneath that management group, including future subscriptions placed there later. It also stays limited to Prod, so Sandbox remains outside the auditor's visibility.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Assign the Reader role to the group at one resource group in each Prod subscription.
Why it's wrong here
A resource-group assignment is too narrow and would miss the rest of each subscription. It also fails the requirement for future subscriptions because each new subscription would require manual assignments to multiple resource groups.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may choose Option B (assign at Corp scope) thinking it covers all subscriptions, but they overlook that it would also grant access to Sandbox, failing the requirement to restrict the auditor to Prod only.
Detailed technical explanation
How to think about this question
Azure role-based access control (RBAC) supports inheritance through management group hierarchies: a role assignment at a management group scope is inherited by all child management groups, subscriptions, resource groups, and resources. This is implemented via the Azure Resource Manager (ARM) which evaluates effective permissions by traversing the hierarchy from the root management group down to the resource level. The Reader role grants read-only access to all resource types, including future resources, because ARM evaluates permissions at request time based on the current hierarchy and role assignments.
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: Assign the Reader role to the group at the Prod management group scope. — Option C is correct because assigning the Reader role at the Prod management group scope applies that permission to all current and future subscriptions and resources within Prod, satisfying the requirement for read-only access without needing separate assignments. Management groups in Azure provide a hierarchical scope that inherits role assignments to all child subscriptions and resource groups, making this the most efficient and future-proof approach.
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 →
Same concept, more angles
1 more ways this is tested on AZ-104
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. 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.
medium- ✓ A.Assign the Reader role to the Auditors group at the Corp management group scope.
- B.Assign the Reader role directly to every subscription under Corp.
- C.Assign the Reader role to the Auditors group at one resource group scope.
- ✓ D.Add the intended users to the Auditors Entra ID group.
- E.Create an Azure Policy assignment to grant read access to all subscriptions.
Why A: 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.
Last reviewed: Jun 11, 2026
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