I get this error return whether I try LsaQueryInformationPolicy() on the local host or on some other machine in the domain. The flags I use for LsaOpenPolicy() are POLICY_LOOKUP_NAMES | POLICY_VIEW_LOCAL_INFORMATION but I also tried POLICY_LOOKUP_NAMES | POLICY_VIEW_LOCAL_INFORMATION | READ_CONTROL without success.
The user I'm logged in as is a local admin both on my machine and on all others I'm trying this.
For the second parameter to LsaQueryInformationPolicy() I use PolicyAuditEventsInformation.
I'm able to use LsaEnumerateAccountRights() against the same host, using the same policy handle, successfully.