Recognize that this is a specific question about the transaction to submit a document. The XDS and XDR transaction: "Provide and Register". In this transaction it defines that the whole transaction must succeed or fail totally. Meaning if any reason causes part of the transaction to fail, the whole transaction must fail. Thus no changes are made if a failure happens.
There are two very different views that could be taken on this question:
On (b), a system needs to have the capability to record the audit log event. The fact that the security-relevant-event is a transaction being rejected vs the same transaction being accepted is simply an attribute values in the audit log message. In the case of the transaction being rejected this is simply setting the fact that it was rejected (EventOutcomeIndicator), and why (EventOutcomeDescription).
Some will wonder if it is useful to record all of these events. This is a different factor totally. The event must be "record-able", what is being questioned is if it always needs to be "recorded". This is a question of "configure-ability" of the audit system. Classes of audit events might be disabled at the direction of some organizational and operational policy. They might be disabled at the generating system, or might be disabled at the Audit Record Repository (meaning not recorded). But this is a configuration. The system must still be able to generate the audit event.