Quick Answer
The answer is Deny. This Azure Policy effect is the correct choice because it actively blocks any resource creation or deployment that does not meet the defined tagging requirements, ensuring that untagged resources are never provisioned in the first place. Unlike Audit, which merely logs non-compliance without preventing deployment, or DeployIfNotExists, which can retroactively add tags but allows the resource to be created, the Deny effect enforces compliance at the point of creation, making it ideal for cost-tracking scenarios where tags must exist from the start. On the Microsoft Cybersecurity Architect exam, this question tests your understanding of Azure Policy effects and their operational impacts, often appearing in scenarios involving governance and cost management. A common trap is confusing DeployIfNotExists with Deny—remember, Deny prevents, while DeployIfNotExists remediates after the fact. Memory tip: "Deny at the door, Audit on the floor."
This SC-100 practice question tests your understanding of design security solutions for infrastructure. 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.
Your company uses Azure DevOps to deploy infrastructure. You need to ensure that all deployed resources have specific tags for cost tracking. Which Azure policy effect should you use to prevent deployment of untagged resources?
Disabled
Why wrong: Turns off the policy.
Deny
Deny prevents creation of non-compliant resources.
DeployIfNotExists
Why wrong: Can fix non-compliant resources but does not prevent deployment.
Audit
Why wrong: Audit only logs, does not block.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Deny
Option B is correct because the 'Deny' effect prevents creation of non-compliant resources. Option A is wrong because 'Audit' only logs compliance, does not block. Option C is wrong because 'DeployIfNotExists' can add tags after creation but does not prevent deployment. Option D is wrong because 'Disabled' turns off the policy.
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
For each option: why learners choose it and why it is or isn't the right answer here.
Disabled
Why it's wrong here
Turns off the policy.
Deny
Why this is correct
Deny prevents creation of non-compliant resources.
Related concept
Standard ACLs match source addresses.
DeployIfNotExists
Why it's wrong here
Can fix non-compliant resources but does not prevent deployment.
Audit
Why it's wrong here
Audit only logs, does not block.
Common exam traps
ACLs are processed top to bottom. The first matching entry wins, and an implicit deny usually exists at the end.
Detailed technical explanation
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.
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
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
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 SC-100 ACL questions on filtering logic and placement.
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FAQ
Design security solutions for infrastructure — This question tests Design security solutions for infrastructure — Standard ACLs match source addresses..
The correct answer is: Deny — Option B is correct because the 'Deny' effect prevents creation of non-compliant resources. Option A is wrong because 'Audit' only logs compliance, does not block. Option C is wrong because 'DeployIfNotExists' can add tags after creation but does not prevent deployment. Option D is wrong because 'Disabled' turns off the policy.
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 SC-100 ACL questions on filtering logic and placement.
Standard ACLs match source addresses.
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Last reviewed: Jun 21, 2026
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