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Whenever I right click on a folder, and go to the security tab then advanced, there is a tab for auditing.

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My question is, whichever user or group we enter here, does it mean that only whatever these people do get's audited? or only these people can see the audits?

Also, when I press add, I get an almost grayed out window that has only Select a principal button. What is the principal and how does the auditing in general operates?

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