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Microsoft Certified: Cybersecurity Architect Expert · Microsoft
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I believe the answer is C based on Deny evaluation here: https://learn.microsoft.com/en-us/azure/governance/policy/concepts/effect-deny; compare with Audit effect and then contrast those with Disabled
The correct effect to use in Azure Policy for evaluating compliance without changing any resources is D. Disabled. When a policy is set to the "Disabled" effect, it will not enforce any changes but can still be used to evaluate and report on the compliance state of the resources. This allows you to monitor compliance without making any modifications to the resources.
A: Deny makes the most sense. The questions states you need to evaluate compliance. D: Disabled has a default compliance state of "compliant". From an auditing perspective this wouldn't make sense.