This SC-100 practice question tests your understanding of design security operations, identity, and compliance capabilities. 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. A key principle to apply: policy effect. 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 are reviewing an Azure Policy definition for GDPR compliance. The policy is intended to audit storage accounts that do not have encryption enabled. However, the policy is not evaluating correctly. What is the most likely reason?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "most likely"
Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
The field 'type' should be 'Microsoft.Storage/storageAccounts/encryption'
Why wrong: The policy targets storage accounts, not the encryption sub-resource. The condition should check the encryption property, not the type.
B
The policy type should be 'Custom'
Why wrong: The policy type does not affect evaluation logic; built-in or custom is irrelevant to the issue.
C
The effect should be 'Audit' instead of 'auditIfNotExists'
Storage account encryption is a property of the account itself, not a separate resource. 'auditIfNotExists' is used for child resources; 'Audit' with a condition on the encryption field would be correct.
D
The policy mode should be 'All' instead of 'Indexed'
Why wrong: Indexed mode is correct for resource types that support tags and location; storage accounts support it.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The effect should be 'Audit' instead of 'auditIfNotExists'
The policy uses the 'auditIfNotExists' effect, which is designed to audit when a dependent resource (e.g., a diagnostic setting) does not exist. However, storage account encryption is a property of the storage account itself, not a separate resource. Therefore, the correct effect should be 'Audit' with a condition that checks if encryption is disabled (e.g., properties.encryption.services.blob.enabled != true). Option C is correct because changing the effect to 'Audit' will properly evaluate the encryption status. Options A, B, and D are incorrect: The field 'type' is correct for the resource type, policy type can be built-in or custom, and the mode 'Indexed' is appropriate for storage accounts.
Key principle: Policy effect
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
The field 'type' should be 'Microsoft.Storage/storageAccounts/encryption'
Why it's wrong here
The policy targets storage accounts, not the encryption sub-resource. The condition should check the encryption property, not the type.
✗
The policy type should be 'Custom'
Why it's wrong here
The policy type does not affect evaluation logic; built-in or custom is irrelevant to the issue.
✓
The effect should be 'Audit' instead of 'auditIfNotExists'
Why this is correct
Storage account encryption is a property of the account itself, not a separate resource. 'auditIfNotExists' is used for child resources; 'Audit' with a condition on the encryption field would be correct.
Clue confirmation
The clue word "most likely" in the question point toward this answer.
Related concept
Policy effect
✗
The policy mode should be 'All' instead of 'Indexed'
Why it's wrong here
Indexed mode is correct for resource types that support tags and location; storage accounts support it.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap is that 'auditIfNotExists' is often confused with 'Audit'. Remember: 'auditIfNotExists' checks for a separate resource, while 'Audit' checks a property. Encryption is a property, so use 'Audit'.
Detailed technical explanation
How to think about this question
Treat this as a scenario question. Identify the problem, the constraint, and the best action. Then compare each option against those facts.
KKey Concepts to Remember
Policy effect
Storage account encryption
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
Policy effect
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 SC-100 question in full detail.
Design security operations, identity, and compliance capabilities — This question tests Design security operations, identity, and compliance capabilities — Policy effect.
What is the correct answer to this question?
The correct answer is: The effect should be 'Audit' instead of 'auditIfNotExists' — The policy uses the 'auditIfNotExists' effect, which is designed to audit when a dependent resource (e.g., a diagnostic setting) does not exist. However, storage account encryption is a property of the storage account itself, not a separate resource. Therefore, the correct effect should be 'Audit' with a condition that checks if encryption is disabled (e.g., properties.encryption.services.blob.enabled != true). Option C is correct because changing the effect to 'Audit' will properly evaluate the encryption status. Options A, B, and D are incorrect: The field 'type' is correct for the resource type, policy type can be built-in or custom, and the mode 'Indexed' is appropriate for storage accounts.
What should I do if I get this SC-100 question wrong?
Review policy effect, then practise related SC-100 questions on the same topic to reinforce the concept.
Are there clue words in this question I should notice?
Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
What is the key concept behind this question?
Policy effect
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