Auditing not working

Hi,

I have created a VM with Windows server 2012r2 on a VMware platform (member server). The machine hardware is on an NAS device. I have created a shared folder on the machine and enabled auditing access for all users (success and failure.) in addition, I have created the group policy, edited security and linked the policy to the O.U in which this machines resides.

I have accessed the shared folder on numerous occasions, however in the event viewer on the local server, I receive the following information:

Log Name:      Security
Source:        Microsoft-Windows-Security-Auditing
Date:          04/03/2016 11:36:23
Event ID:      4719
Task Category: Audit Policy Change
Level:         Information
Keywords:      Audit Success
User:          N/A
Computer:     

System audit policy was changed.

Subject:
 Security ID:  SYSTEM
 Account Name:  
 Account Domain:  
 Logon ID:  0x3E7

Audit Policy Change:
 Category:  Object Access
 Subcategory:  Other Object Access Events
 Subcategory GUID: {0cce9227-69ae-11d9-bed3-505054503030}
 Changes:  Success removed, Failure removed
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-Security-Auditing" Guid="{54849625-5478-4994-A5BA-3E3B0328C30D}" />
    <EventID>4719</EventID>
    <Version>0</Version>
    <Level>0</Level>
    <Task>13568</Task>
    <Opcode>0</Opcode>
    <Keywords>0x8020000000000000</Keywords>
    <TimeCreated SystemTime="2016-03-04T11:36:23.743506400Z" />
    <EventRecordID>14370</EventRecordID>
    <Correlation />
    <Execution ProcessID="476" ThreadID="2848" />
    <Channel>Security</Channel>
    <Computer>Owlserv08.Owlstone.local</Computer>
    <Security />
  </System>
  <EventData>
    <Data Name="SubjectUserSid">S-1-5-18</Data>
    <Data Name="SubjectUserName">OWLSERV08$</Data>
    <Data Name="SubjectDomainName">OWLSTONE</Data>
    <Data Name="SubjectLogonId">0x3e7</Data>
    <Data Name="CategoryId">%%8274</Data>
    <Data Name="SubcategoryId">%%12804</Data>
    <Data Name="SubcategoryGuid">{0CCE9227-69AE-11D9-BED3-505054503030}</Data>
    <Data Name="AuditPolicyChanges">%%8448, %%8450</Data>
  </EventData>
</Event>

There are no events logged on either domain controllers. I have a 1x 2008r2 and 1x 2003 domain controllers

Any help would be appreciated