- A
Create a remediation task for the policy assignment.
Existing resources are not changed automatically by a Modify assignment; remediation is needed to bring them into compliance.
- B
Ensure the policy assignment has a managed identity.
The policy engine uses the identity to perform the configuration changes needed by the Modify effect.
- C
Grant that identity permission to update the target resources or tags at the assigned scope.
The managed identity needs sufficient write permissions, such as Tag Contributor or Contributor, to apply the change.
- D
Recreate the virtual machines before the policy can evaluate them.
Why wrong: Recreation is unnecessary because remediation can update existing resources in place when permissions and assignment are correct.
- E
Change the effect from Modify to Audit to trigger the tag operation.
Why wrong: Audit only reports noncompliance; it does not change resource state.
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.
A Modify policy adds CostCenter=042 to resources in RG-Finance. New resources are tagged correctly, but existing virtual machines remain untagged. What three requirements must be met for the assignment to update the existing resources? Select three.
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.
Option A is correct because a remediation task is required to apply a Modify effect policy to existing non-compliant resources. The Modify effect only tags new resources automatically; existing resources remain untagged until a remediation task is triggered, which uses the policy's managed identity to update the resource tags.
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
Existing resources are not changed automatically by a Modify assignment; remediation is needed to bring them into compliance.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Ensure the policy assignment has a managed identity.
Why this is correct
The policy engine uses the identity to perform the configuration changes needed by the Modify effect.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Grant that identity permission to update the target resources or tags at the assigned scope.
Why this is correct
The managed identity needs sufficient write permissions, such as Tag Contributor or Contributor, to apply the change.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Recreate the virtual machines before the policy can evaluate them.
Why it's wrong here
Recreation is unnecessary because remediation can update existing resources in place when permissions and assignment are correct.
When this WOULD be correct
In a scenario where a policy uses the DeployIfNotExists effect to install an agent on VMs, and the VMs must be redeployed to trigger the agent installation because the policy cannot modify existing VMs without remediation, then recreating VMs might be required if remediation is not configured.
- ✗
Change the effect from Modify to Audit to trigger the tag operation.
Why it's wrong here
Audit only reports noncompliance; it does not change resource state.
When this WOULD be correct
In a scenario where a policy uses the 'Audit' effect to detect non-compliant resources and you need to trigger a separate remediation action (e.g., via a runbook or manual process), changing to Audit would be correct to enable compliance evaluation without automatic modification.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓Create a remediation task for the policy assignment.Correct answer▾
Why this is correct
Existing resources are not changed automatically by a Modify assignment; remediation is needed to bring them into compliance.
✗Recreate the virtual machines before the policy can evaluate them.Wrong answer — click to see why▾
Why this is wrong here
Azure Policy evaluates existing resources automatically; recreating VMs is unnecessary because the Modify effect with a remediation task can update tags on existing resources without redeployment.
★ When this WOULD be the correct answer
In a scenario where a policy uses the DeployIfNotExists effect to install an agent on VMs, and the VMs must be redeployed to trigger the agent installation because the policy cannot modify existing VMs without remediation, then recreating VMs might be required if remediation is not configured.
Why candidates choose this
Candidates may think that policy only applies to new resources and that existing resources need to be recreated to comply, misunderstanding that Azure Policy can evaluate and remediate existing resources through remediation tasks.
✗Change the effect from Modify to Audit to trigger the tag operation.Wrong answer — click to see why▾
Why this is wrong here
The Modify effect already triggers the tag operation; changing to Audit would only evaluate compliance without applying tags, failing to update existing resources.
★ When this WOULD be the correct answer
In a scenario where a policy uses the 'Audit' effect to detect non-compliant resources and you need to trigger a separate remediation action (e.g., via a runbook or manual process), changing to Audit would be correct to enable compliance evaluation without automatic modification.
Why candidates choose this
Candidates may confuse the purpose of policy effects, thinking Audit is needed to 'activate' the policy or that Modify requires an explicit trigger, not understanding that Modify inherently applies changes.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume the Modify effect automatically updates existing resources, but it only applies to new resources; a remediation task is mandatory for existing resources, and the managed identity must have appropriate permissions (e.g., Tag Contributor) at the scope.
Detailed technical explanation
How to think about this question
Under the hood, a Modify policy assignment uses a managed identity to perform resource updates via Azure Resource Manager (ARM) API calls. The remediation task iterates through non-compliant resources and applies the defined tag modifications, respecting role-based access control (RBAC) permissions at the assigned scope. This process is asynchronous and can be monitored via the Azure Policy compliance dashboard.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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. — Option A is correct because a remediation task is required to apply a Modify effect policy to existing non-compliant resources. The Modify effect only tags new resources automatically; existing resources remain untagged until a remediation task is triggered, which uses the policy's managed identity to update the resource tags.
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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