OK.. So to satisfy auditors and myself would you have a recommendation for a 3rd party app that I could use to monitor this? I was hoping to find a server based app with clients on the SQL server(s) so I'm able to catch the type of activity you're referring to. We already have our system locked down for the average user but how or what would you recommend to monitor the gate keeper (me).

In the end that's what the auditors are asking for, a report on the gate keeper and the fact that he/she has used their powers for good and not evil.