Yes, via a variety of mechanisms, but it isn't an option you turn on.
Method #1: Write triggers underneath each table that log all of the auditing information.
Method #2: Create a server side trace that will trace all activity against your database, storing the file where you can pull it for review.
Method #3 (low transaction volumes only): Create a server-side trace and store the results directly to a table in your database.
Method #4: Use a product like Lumigent's Entegra to audit the system.
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This was first published in June 2004