You´re running HANA 1.0 and trying to create / delete audit policy with activities <CREATE FUNCTION> or <DROP FUNCTION>.
This will fail with the following error:
Error while creating audit policy 'xxx'
sql syntax error
Incorrect syntax near Function'
SAP HANA 1.0
KBA , HAN-STD-ADM-SEC , SAP HANA Security & User Management (Studio) , Problem
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