Permissions Management and Auditing in Office 365

Permissions management is best maintained and audited by the use of "Groups". Maintaining three major groups will help with auditing. These should be Site Owners, Site Members and Site Visitors. These are defined as FullControl, Add/Update/Delete, and Read Only, respectively.
The site administrator would add existing Active Directory security groups into these or add individual users to these groups.



Permission Management can be viewed site wide or on a specific piece of content.

Site Permission checking:

Content specific permission checking:

You can also check global Permissions per user

Auditing
Configure the settings below on your site to collect Audit Logs.

Audit Log Reporting

Note that the above Content Viewing report will not work in SharePoint Online as this is unsupported for online.


Custom Audit Reports can be run and saved to a SharePoint library for a specific user :