An engineer needs to first create a custom audit event and then set up an...

This is a valid step. To create a custom audit event in IdentityIQ, the event/action must be registered so the audit framework recognizes it. Adding an AuditAction entry in the AuditConfig object XML is the correct type of configuration because it defines the audit action name, display name, and enabled state. The name value is the internal audit action identifier that code, rules, workflows, or tasks can use when writing audit records. The displayName provides the readable label, and enabled= " true " allows the event to be captured. This step alone is not the entire solution because the engineer must also write logic to create the audit record and configure a report to query and display it. However, the question asks whether this is one of the required steps, and it is. References/topics: IdentityIQ Engineer — AuditConfig, AuditAction XML, custom audit actions, audit event enablement, audit report setup.