File system policies are used to provide data on your network. This includes giving you the ability to control security auditing of files and folders. One way this can be used effectively would be to make sure that only users with administrator capabilities can modify system files and folders. In this case, you can use file system policies to give the administrators full control over these areas and grant just read-only permissions to other users. There may be some areas of the network you don't want users accessing at all; in that case, you can use file system policies to prevent certain users from even looking at the files or folders.
For those users who can access files and folders, you can use file system policies to audit their activity. In this case, you are specifying which users and which events are logged for both failed and successful events.
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