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On Windows Server 2003 and Windows Server 2008 machines, when you set the audit flag by GPO, the audit setting applies on a file with the scope of "files only." When this GPO is applied, audit is not set on the file. If we use Security Templates in MMC to create a template with the audit setting, the same issue occurs.
Apply onto Applies permissions to current folder Applies permissions to subfolders in current folder Applies permissions to files in current folder Applies permissions to all subsequent subfolders Applies permissions to files in all subsequent subfolders
This folder only X
The folder, subfolders and files X x x x x
This folder and subfolders X x x
This folder and files X x x
Subfolders and files only x x x x
Subfolders only x x
Files only x x
Based on the documentation, "Files only" applies to files in the current folder (not the file itself). So the SDDL generated by group policy editor is correct.
To set the permission on the file, we should use "This folder only." The wording is misleading.
Use "This folder only" instead of "Files only" when setting the audit flag.
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