AX 2012 user authentication - AD clarification?

Can AX 2012 update or corrupt Active Directory user account? AX can only authenticate the AD user.

the directory log files are stored in the AX server box.

server configuration file is stored in the AX server box

When we install a client on user PC, is the user profile created locally or at the server?

Hi Patrick,

AX can only consume AD user.

What do you mean by directory log files?

Server configuration file is stored in registry in AX server box.

Stored locally.

Thanks Harish. The active directory user account is found to be corrupted in the server box where AX is stored. I wonder what would cause this problem?