Proper audit and logging requirements are defined by the data itself, but I would focus less on the audit requirements and more on the investigative requirements. If the data is compromised, the next step will be to analyze the situation forensically, draw some conclusions and hopefully prosecute the perpetrators.
If the data coming out of syslog is sufficient to investigate an incident -- and it's stored in a way that will stand up in court -- then I have a hard time believing it wouldn't satisfy an auditor.
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