This solution meets the requirements because it encrypts data at rest using AWS KMS keys and provides an audit trail of when and by whom they were used. Server-side encryption with AWS KMS managed keys (SSE-KMS) is a feature of Amazon S3 that encrypts data using keys that are managed by AWS KMS. When SSE-KMS is enabled for an S3 bucket or object, S3 requests AWS KMS to generate data keys and encrypts data using these keys. AWS KMS logs every use of its keys in AWS CloudTrail, which records all API calls to AWS KMS as events. These events include information such as who made the request, when it was made, and which key was used. The company policy can use CloudTrail logs to audit critical events related to their data encryption and access. Server-side encryption with Amazon S3 managed keys (SSE-S3) also encrypts data at rest using keys that are managed by S3, but does not provide an audit trail of key usage. Server-side encryption with customer-provided keys (SSE-C) and server-side encryption with self-managed keys also encrypt data at rest using keys that are provided or managed by customers, but do not provide an audit trail of key usage and require additional overhead for key management.