Question 464 of 1,411

Describe the concepts of security, compliance, and identity →hardMultiple SelectObjective-mapped

Quick Answer

The correct answer is that the policy assignment can be deployed to a subscription or management group. This is because the Azure Policy ARM template to audit SQL encryption uses the policy definition ID for “Audit if SQL Database encryption is not enabled,” which has an effect of “AuditIfNotExists”—meaning it checks for compliance without enforcing or blocking deployment. On the SC-900 exam, this tests your understanding of Azure Policy scopes and effects, often appearing in scenario-based questions where you must distinguish between auditing and enforcing policies. A common trap is assuming the template deploys a resource, but it only assigns a policy at the subscription or management group level, not a resource group. Memory tip: “AuditIfNotExists” equals “look, don’t lock”—it reports non-compliance but never blocks.

SC-900 Practice Question: Describe the concepts of security, compliance, and identity

This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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.

Exhibit

{
        "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
        "contentVersion": "1.0.0.0",
        "resources": [
            {
                "type": "Microsoft.Authorization/policyAssignments",
                "apiVersion": "2021-06-01",
                "name": "audit-sql-encryption",
                "properties": {
                    "policyDefinitionId": "/providers/Microsoft.Authorization/policyDefinitions/86a912f6-9a06-4e26-b447-11b16ba8659f",
                    "parameters": {
                        "effect": {
                            "value": "AuditIfNotExists"
                        }
                    }
                }
            }
        ]
    }

Refer to the exhibit. An administrator deploys this Azure Resource Manager template. Which TWO of the following statements are true?

Question 1hardmulti select

Full question →

Exhibit

{
        "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
        "contentVersion": "1.0.0.0",
        "resources": [
            {
                "type": "Microsoft.Authorization/policyAssignments",
                "apiVersion": "2021-06-01",
                "name": "audit-sql-encryption",
                "properties": {
                    "policyDefinitionId": "/providers/Microsoft.Authorization/policyDefinitions/86a912f6-9a06-4e26-b447-11b16ba8659f",
                    "parameters": {
                        "effect": {
                            "value": "AuditIfNotExists"
                        }
                    }
                }
            }
        ]
    }

A
The template creates a resource group if it does not exist.
Why wrong: The template does not include a resource group resource.
B
The policy assignment enforces encryption on existing SQL databases.
Why wrong: The effect is 'AuditIfNotExists', which audits only, does not enforce.
C
The template deploys a new SQL database.
Why wrong: The template only assigns a policy, it does not deploy any SQL database.
D
The policy assignment audits whether SQL Database transparent data encryption is enabled.
The policy definition ID maps to the built-in policy for SQL TDE auditing.
E
The policy assignment can be deployed to a subscription or management group.
The resource type 'Microsoft.Authorization/policyAssignments' can be deployed at subscription or management group scope.

Full breakdown with real-world context →

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

✓

The policy assignment audits whether SQL Database transparent data encryption is enabled.

The policy definition ID corresponds to 'Audit if SQL Database encryption is not enabled'. The effect is 'AuditIfNotExists', so it audits but does not enforce. The assignment is at subscription/management group scope, not resource group. It does not deploy a resource but assigns a policy.

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.

✗
The template creates a resource group if it does not exist.
Why it's wrong here
The template does not include a resource group resource.
✗
The policy assignment enforces encryption on existing SQL databases.
Why it's wrong here
The effect is 'AuditIfNotExists', which audits only, does not enforce.
✗
The template deploys a new SQL database.
Why it's wrong here
The template only assigns a policy, it does not deploy any SQL database.
✓
The policy assignment audits whether SQL Database transparent data encryption is enabled.
Why this is correct
The policy definition ID maps to the built-in policy for SQL TDE auditing.
Related concept
Read the scenario before looking for a memorised answer.
✓
The policy assignment can be deployed to a subscription or management group.
Why this is correct
The resource type 'Microsoft.Authorization/policyAssignments' can be deployed at subscription or management group scope.
Related concept
Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Detailed technical explanation

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
Use explanations to understand the rule behind the answer.

TExam Day Tips

Underline the problem statement mentally.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.

What to study next

Got this wrong? Here's your next step.

Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.

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FAQ

Questions learners often ask

What does this SC-900 question test?

Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: The policy assignment audits whether SQL Database transparent data encryption is enabled. — The policy definition ID corresponds to 'Audit if SQL Database encryption is not enabled'. The effect is 'AuditIfNotExists', so it audits but does not enforce. The assignment is at subscription/management group scope, not resource group. It does not deploy a resource but assigns a policy.

What should I do if I get this SC-900 question wrong?

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 21, 2026

Question Discussion

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This SC-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SC-900 exam.

SC-900 Practice Question: Describe the concepts of security, compliance, and identity

Exhibit

Exhibit

Why each option matters

Option-by-option breakdown

Common exam trap: answer the scenario, not the keyword

How to think about this question

KKey Concepts to Remember

TExam Day Tips

How this comes up in practice

Concepts from this question explained

Got this wrong? Here's your next step.

Related SC-900 practice-question pages

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Describe the capabilities of Microsoft compliance solutions practice questions

Describe the concepts of security, compliance, and identity practice questions

SC-900 fundamentals practice questions

SC-900 scenario practice questions

SC-900 troubleshooting practice questions

Start a free SC-900 practice session

Questions learners often ask

What does this SC-900 question test?

What is the correct answer to this question?

What should I do if I get this SC-900 question wrong?

What is the key concept behind this question?

Question Discussion