You can set the audit policy as follows.

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1. “Start -> Run”.
2. Type ‘gpedit.msc’ (without the quotes).
3. Navigate to “Local Computer Policy -> Computer Configuration -> Windows Settings -> Security Settings -> Local Policies -> Audit Policies -> Audit logon events”.
4. Highlight and right-click and select properties.
5. Configure as desired.
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Note: Logging in without a password counts as a “failure”. This results in the security log filling up very fast if you log failures and have a user without a password. The result is you cannot login normally. Also note, not having a password is a potential and probable security risk.

The event log can be viewed by going to
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1. “Start -> Control Panel ->  Performance and Maintenance -> Administrative Tools”.
2. Click on “Event Viewer”.
3. Look in the Event Log (Security) for a Logon/Logoff Event 528. It should have a Logon Type 10.
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