can you post snap of server object tab of your snapshot job showing snapshot/audit options clearly.
the issue went away on its own. I deleted trhe Audit Job and created it from scratch.
After that it just worked like expected.
I have no idea what happened....But i can live with that for now.
someone would have selected few additional check box related to windows ACLs. which Probably causing the issue. Gud that you were able to fix somehow or other.