Which Teamcenter version are you using?
What is value for below preferences?
Ideally, it should log for all events.You may share scenario for which it is not working.
What is Teamcenter Version? I assume it is either 10 or earlier.
You need to set both preferences listed below:
TC_audit_manager_version=2 [ If Teamcenter version is 10 or earlier.], preferrably 3.
Setting value to 3 will display audit log in Summary Tab. It will generate audit log in database.
I think, Error you are getting is becuase Teamcenter expects value for TC_audit_manager_version too.