The answer is Compliant. This is correct because the Azure Policy definition audits whether the storage account’s network rules have a defaultAction set to 'Allow', but your storage account uses a defaultAction of 'Deny' and only adds a specific IP rule. Since the condition in the policy—type equals 'Microsoft.Storage/storageAccounts' AND defaultAction equals 'Allow'—evaluates to false, the resource is reported as compliant, not non-compliant. On the AZ-204 exam, this scenario tests your understanding of how Azure Policy compliance is determined by the logical evaluation of policy conditions, not by the security posture of the resource itself. A common trap is assuming that any restrictive network rule automatically triggers compliance, but the policy only cares about the explicit defaultAction value. Remember the mnemonic: “Deny default, policy default—if the condition’s false, compliance halts.”
AZ-204 Implement Azure security Practice Question
This AZ-204 practice question tests your understanding of implement azure security. 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.
Refer to the exhibit. You have an Azure Policy definition as shown. Your team creates a storage account with network rules set to 'Deny' by default, and then adds an IP rule to allow traffic from a specific IP range. What compliance state will this storage account be reported as?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Compliant
The policy audits if the storage account type is 'Microsoft.Storage/storageAccounts' AND defaultAction equals 'Allow'. Since the defaultAction is 'Deny', the condition is false, so the resource is compliant. Option B is correct.
Key principle: ACLs process entries top to bottom and stop at the first match. Entry order and interface direction matter as much as the permit or deny statement.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Error
Why it's wrong here
No error; the policy evaluation completes without issue.
✓
Compliant
Why this is correct
Condition is not met (defaultAction is 'Deny'), so audit effect does not apply.
Related concept
Standard ACLs match source addresses.
✗
Exempt
Why it's wrong here
Exemption is a separate assignment, not derived from policy evaluation.
✗
Non-compliant
Why it's wrong here
Non-compliant would occur if defaultAction were 'Allow'.
Common exam traps
Common exam trap: ACLs stop at the first match
ACLs are processed top to bottom. The first matching entry wins, and an implicit deny usually exists at the end.
Detailed technical explanation
How to think about this question
ACL questions test precision: source, destination, protocol, port and direction. A generally correct ACL can still fail if it is applied on the wrong interface or in the wrong direction.
KKey Concepts to Remember
Standard ACLs match source addresses.
Extended ACLs can match source, destination, protocol and ports.
The first matching ACL entry is used.
There is usually an implicit deny at the end.
TExam Day Tips
→Check inbound versus outbound direction.
→Read the ACL from top to bottom.
→Look for a broader permit or deny above the intended line.
Key takeaway
ACLs process entries top to bottom and stop at the first match. Entry order and interface direction matter as much as the permit or deny statement.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-204 question in full detail.
Review ACL processing order, placement rules (standard near destination, extended near source), and inbound vs outbound direction. Study wildcard masks and implicit deny. Then practise related AZ-204 ACL questions on filtering logic and placement.
Implement Azure security — This question tests Implement Azure security — Standard ACLs match source addresses..
What is the correct answer to this question?
The correct answer is: Compliant — The policy audits if the storage account type is 'Microsoft.Storage/storageAccounts' AND defaultAction equals 'Allow'. Since the defaultAction is 'Deny', the condition is false, so the resource is compliant. Option B is correct.
What should I do if I get this AZ-204 question wrong?
Review ACL processing order, placement rules (standard near destination, extended near source), and inbound vs outbound direction. Study wildcard masks and implicit deny. Then practise related AZ-204 ACL questions on filtering logic and placement.
What is the key concept behind this question?
Standard ACLs match source addresses.
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Question Discussion
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