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As a manager or director, can I find out what my administrator is doing?

Yes. In the company version (Office and Enterprise), all of the administrator's actions on the web application are logged. If they include themselves in a policy which they are not part of and later remove themselves, or if they unprotect and re-protect a document, all their activity is recorded in case it is necessary to conduct an audit.

You can see how to access to audit admin log here.

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