- A
Assign a policy at the management group level that denies all locations except West US, and assign a separate policy at the subscription level that allows East US.
Why wrong: The management group policy would still deny East US; a lower scope cannot override a higher scope deny.
- B
Assign a policy at each subscription level allowing only West US, and grant the resource group owner role to bypass.
Why wrong: Owner role does not bypass policy; policy is enforced regardless of role.
- C
Assign a policy at the management group level that denies all locations except West US, and create a policy exemption for the specific resource group.
Exemption allows the resource group to bypass the policy.
- D
Use Azure Blueprints to assign a policy at the management group and then edit the blueprint for the exception.
Why wrong: Blueprints deploy policies, but exceptions are managed via exemptions, not blueprint editing.
Quick Answer
The answer is to assign a policy at the management group level that denies all locations except West US, and create a policy exemption for the specific resource group. This works because Azure Policy’s deny effect, when applied at a higher scope like a management group, enforces a blanket restriction across all child subscriptions, while exemptions allow you to selectively bypass that enforcement for a specific scope, such as a resource group, without altering the original policy assignment. On the AZ-305 exam, this scenario tests your understanding of policy inheritance and the difference between exclusions (which remove the scope from the policy’s evaluation) and exemptions (which mark the scope as compliant despite the deny effect). A common trap is confusing exemptions with exclusions or attempting to assign a separate allow policy at the resource group level, which would conflict with the higher-level deny. Remember the memory tip: “Deny at the top, exempt the spot” — enforce broadly, then carve out exceptions cleanly with exemptions.
AZ-305 Practice Question: Design identity, governance, and monitoring solutions
This AZ-305 practice question tests your understanding of design identity, governance, and monitoring solutions. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
Your company has multiple Azure subscriptions managed by a management group. You need to enforce that all resources are deployed in the West US region only. Additionally, you must allow a specific resource group in the production subscription to be deployed in East US. What should you configure?
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 a policy at the management group level that denies all locations except West US, and create a policy exemption for the specific resource group.
Azure Policy can be assigned at the management group level with a deny effect to restrict locations. To allow exceptions, you can create an exclusion by specifying the resource group as an exemption or by using a policy assignment at a lower scope with a different effect. The best practice is to use policy exemptions for specific RGs.
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.
- ✗
Assign a policy at the management group level that denies all locations except West US, and assign a separate policy at the subscription level that allows East US.
Why it's wrong here
The management group policy would still deny East US; a lower scope cannot override a higher scope deny.
- ✗
Assign a policy at each subscription level allowing only West US, and grant the resource group owner role to bypass.
Why it's wrong here
Owner role does not bypass policy; policy is enforced regardless of role.
- ✓
Assign a policy at the management group level that denies all locations except West US, and create a policy exemption for the specific resource group.
Why this is correct
Exemption allows the resource group to bypass the policy.
Related concept
Standard ACLs match source addresses.
- ✗
Use Azure Blueprints to assign a policy at the management group and then edit the blueprint for the exception.
Why it's wrong here
Blueprints deploy policies, but exceptions are managed via exemptions, not blueprint editing.
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 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.
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-305 ACL questions on filtering logic and placement.
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Design identity, governance, and monitoring solutions — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-305 question test?
Design identity, governance, and monitoring solutions — This question tests Design identity, governance, and monitoring solutions — Standard ACLs match source addresses..
What is the correct answer to this question?
The correct answer is: Assign a policy at the management group level that denies all locations except West US, and create a policy exemption for the specific resource group. — Azure Policy can be assigned at the management group level with a deny effect to restrict locations. To allow exceptions, you can create an exclusion by specifying the resource group as an exemption or by using a policy assignment at a lower scope with a different effect. The best practice is to use policy exemptions for specific RGs.
What should I do if I get this AZ-305 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-305 ACL questions on filtering logic and placement.
What is the key concept behind this question?
Standard ACLs match source addresses.
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Last reviewed: Jun 20, 2026
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