Win7 desktops secpol and Local Sec Policy not showing auditing enabled

Question

ok, I thought I have this licked with a solution before,
I have a Server 2008 R2 and Win7 Desktops where I have a Server 2008 GPO to Audit Events on the server and desktops, however at the desktops locally auditing is greyed out and displaying ‘no auditing’ but logs show auditing entries.
At the Server 2008 R2 SP1 64
Server
Administrative Tools
Group Policy Management
  Forest
  Domains
  My_Network_Name.com
  Default Domain Policy
  Edit
  Computer Configuration
  Policies
  Windows Settings
  Security Settings
  Local Policies
  Audit Policy
  Logon, Account, Etc all able to change Success, Fail
However at the Windows 7 desktops the Local Security Policy, Local Policies, Audit Policies, all the policies have ‘no auditing’ however the local Win7 Event Logs are auditing.
What would cause this to display ‘no auditing’ at the desktops and yet enter events locally and at the server
Thank you
B.

Answer 1

Thanks,
The Server 2008 R2 has this:
System audit policy
Category/Subcategory                      Setting
System
  Security System Extension               No Auditing
  System Integrity                        No Auditing
  IPsec Driver                            No Auditing
  Other System Events                     Success and Failure
  Security State Change                   No Auditing
Logon/Logoff
  Logon                                   Success and Failure
  Logoff                                  Success and Failure
  Account Lockout                         Success and Failure
  IPsec Main Mode                         No Auditing
  IPsec Quick Mode                        No Auditing
  IPsec Extended Mode                     No Auditing
  Special Logon                           No Auditing
  Other Logon/Logoff Events               Success and Failure
  Network Policy Server                   No Auditing
Object Access
  File System                             No Auditing
  Registry                                No Auditing
  Kernel Object                           No Auditing
  SAM                                     No Auditing
  Certification Services                  No Auditing
  Application Generated                   Failure
  Handle Manipulation                     No Auditing
  File Share                              Failure
  Filtering Platform Packet Drop          No Auditing
  Filtering Platform Connection           No Auditing
  Other Object Access Events              No Auditing
  Detailed File Share                     No Auditing
Privilege Use
  Sensitive Privilege Use                 No Auditing
  Non Sensitive Privilege Use             No Auditing
  Other Privilege Use Events              No Auditing
Detailed Tracking
  Process Termination                     No Auditing
  DPAPI Activity                          No Auditing
  RPC Events                              No Auditing
  Process Creation                        No Auditing
Policy Change
  Audit Policy Change                     Success and Failure
  Authentication Policy Change            Success and Failure
  Authorization Policy Change             Success and Failure
  MPSSVC Rule-Level Policy Change         No Auditing
  Filtering Platform Policy Change        No Auditing
  Other Policy Change Events              Success and Failure
Account Management
  User Account Management                 No Auditing
  Computer Account Management             No Auditing
  Security Group Management               No Auditing
  Distribution Group Management           No Auditing
  Application Group Management            No Auditing
  Other Account Management Events         No Auditing
DS Access
  Directory Service Changes               No Auditing
  Directory Service Replication           No Auditing
  Detailed Directory Service Replication  No Auditing
  Directory Service Access                No Auditing
Account Logon
  Kerberos Service Ticket Operations      No Auditing
  Other Account Logon Events              No Auditing
  Kerberos Authentication Service         No Auditing
  Credential Validation                   No Auditing
 The Windows 7 Desktops have this:
System audit policy
Category/Subcategory                      Setting
System
  Security System Extension               No Auditing
  System Integrity                        No Auditing
  IPsec Driver                            No Auditing
  Other System Events                     Success and Failure
  Security State Change                   No Auditing
Logon/Logoff
  Logon                                   Success and Failure
  Logoff                                  Success and Failure
  Account Lockout                         Success and Failure
  IPsec Main Mode                         No Auditing
  IPsec Quick Mode                        No Auditing
  IPsec Extended Mode                     No Auditing
  Special Logon                           No Auditing
  Other Logon/Logoff Events               Success and Failure
  Network Policy Server                   No Auditing
Object Access
  File System                             No Auditing
  Registry                                No Auditing
  Kernel Object                           No Auditing
  SAM                                     No Auditing
  Certification Services                  No Auditing
  Application Generated                   Failure
  Handle Manipulation                     No Auditing
  File Share                              Failure
  Filtering Platform Packet Drop          No Auditing
  Filtering Platform Connection           No Auditing
  Other Object Access Events              No Auditing
  Detailed File Share                     No Auditing
Privilege Use
  Sensitive Privilege Use                 No Auditing
  Non Sensitive Privilege Use             No Auditing
  Other Privilege Use Events              No Auditing
Detailed Tracking
  Process Termination                     No Auditing
  DPAPI Activity                          No Auditing
  RPC Events                              No Auditing
  Process Creation                        No Auditing
Policy Change
  Audit Policy Change                     Success and Failure
  Authentication Policy Change            Success and Failure
  Authorization Policy Change             Success and Failure
  MPSSVC Rule-Level Policy Change         No Auditing
  Filtering Platform Policy Change        No Auditing
  Other Policy Change Events              Success and Failure
Account Management
  User Account Management                 No Auditing
  Computer Account Management             No Auditing
  Security Group Management               No Auditing
  Distribution Group Management           No Auditing
  Application Group Management            No Auditing
  Other Account Management Events         No Auditing
DS Access
  Directory Service Changes               No Auditing
  Directory Service Replication           No Auditing
  Detailed Directory Service Replication  No Auditing
  Directory Service Access                No Auditing
Account Logon
  Kerberos Service Ticket Operations      No Auditing
  Other Account Logon Events              No Auditing
  Kerberos Authentication Service         No Auditing
  Credential Validation                   No Auditing