I posted on this topic before but I think I can explain the issue more
clearly now...

If I use the /S switch of DSACLS to restore the ACLS of an object back
to the default as defined in the schema, the object no longer inherits
auditing entries.  The simplest test to observe this is:

1. create a new user or computer object
2. look at its properties - security tab, advanced, auditing tab -
"Allow inheritable audinting properties from parent to propogate to this
object" is checked, and any such inherited auditing entries are
displayed
3. at a command prompt, type DSACLS <DN of the object> /S
4. look at the same security properties again - the check box is cleared
and the entries are gone.

Any idea why this happens ?  In this simple example, I would have
expected NO change - the object had just been created, presumably with
the same default security descriptor as the /S switch uses.

Dave
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