diff --git a/tests/local_testing/test_audit_logs_proxy.py b/tests/local_testing/test_audit_logs_proxy.py
new file mode 100644
index 000000000..48187e9b2
--- /dev/null
+++ b/tests/local_testing/test_audit_logs_proxy.py
@@ -0,0 +1,151 @@
+import os
+import sys
+import traceback
+import uuid
+from datetime import datetime
+
+from dotenv import load_dotenv
+from fastapi import Request
+from fastapi.routing import APIRoute
+
+
+import io
+import os
+import time
+
+# this file is to test litellm/proxy
+
+sys.path.insert(
+    0, os.path.abspath("../..")
+)  # Adds the parent directory to the system path
+import asyncio
+import logging
+
+load_dotenv()
+
+import pytest
+import uuid
+import litellm
+from litellm._logging import verbose_proxy_logger
+
+from litellm.proxy.proxy_server import (
+    LitellmUserRoles,
+    audio_transcriptions,
+    chat_completion,
+    completion,
+    embeddings,
+    image_generation,
+    model_list,
+    moderations,
+    new_end_user,
+    user_api_key_auth,
+)
+
+from litellm.proxy.utils import PrismaClient, ProxyLogging, hash_token, update_spend
+
+verbose_proxy_logger.setLevel(level=logging.DEBUG)
+
+from starlette.datastructures import URL
+
+from litellm.proxy.management_helpers.audit_logs import create_audit_log_for_update
+from litellm.proxy._types import LiteLLM_AuditLogs, LitellmTableNames
+from litellm.caching.caching import DualCache
+
+proxy_logging_obj = ProxyLogging(user_api_key_cache=DualCache())
+import json
+
+
+@pytest.mark.asyncio
+async def test_create_audit_log_for_update_premium_user():
+    """
+    Basic unit test for create_audit_log_for_update
+
+    Test that the audit log is created when a premium user updates a team
+    """
+    with patch("litellm.proxy.proxy_server.premium_user", True), patch(
+        "litellm.store_audit_logs", True
+    ), patch("litellm.proxy.proxy_server.prisma_client") as mock_prisma:
+
+        mock_prisma.db.litellm_auditlog.create = AsyncMock()
+
+        request_data = LiteLLM_AuditLogs(
+            id="test_id",
+            updated_at=datetime.now(),
+            changed_by="test_changed_by",
+            action="updated",
+            table_name=LitellmTableNames.TEAM_TABLE_NAME,
+            object_id="test_object_id",
+            updated_values=json.dumps({"key": "value"}),
+            before_value=json.dumps({"old_key": "old_value"}),
+        )
+
+        await create_audit_log_for_update(request_data)
+
+        mock_prisma.db.litellm_auditlog.create.assert_called_once_with(
+            data={
+                "id": "test_id",
+                "updated_at": request_data.updated_at,
+                "changed_by": request_data.changed_by,
+                "action": request_data.action,
+                "table_name": request_data.table_name,
+                "object_id": request_data.object_id,
+                "updated_values": request_data.updated_values,
+                "before_value": request_data.before_value,
+            }
+        )
+
+
+@pytest.fixture
+def prisma_client():
+    from litellm.proxy.proxy_cli import append_query_params
+
+    ### add connection pool + pool timeout args
+    params = {"connection_limit": 100, "pool_timeout": 60}
+    database_url = os.getenv("DATABASE_URL")
+    modified_url = append_query_params(database_url, params)
+    os.environ["DATABASE_URL"] = modified_url
+
+    # Assuming PrismaClient is a class that needs to be instantiated
+    prisma_client = PrismaClient(
+        database_url=os.environ["DATABASE_URL"], proxy_logging_obj=proxy_logging_obj
+    )
+
+    return prisma_client
+
+
+@pytest.mark.asyncio()
+async def test_create_audit_log_in_db(prisma_client):
+    print("prisma client=", prisma_client)
+
+    setattr(litellm.proxy.proxy_server, "prisma_client", prisma_client)
+    setattr(litellm.proxy.proxy_server, "master_key", "sk-1234")
+    setattr(litellm.proxy.proxy_server, "premium_user", True)
+    setattr(litellm, "store_audit_logs", True)
+
+    await litellm.proxy.proxy_server.prisma_client.connect()
+    audit_log_id = f"audit_log_id_{uuid.uuid4()}"
+
+    # create a audit log for /key/generate
+    request_data = LiteLLM_AuditLogs(
+        id=audit_log_id,
+        updated_at=datetime.now(),
+        changed_by="test_changed_by",
+        action="updated",
+        table_name=LitellmTableNames.TEAM_TABLE_NAME,
+        object_id="test_object_id",
+        updated_values=json.dumps({"key": "value"}),
+        before_value=json.dumps({"old_key": "old_value"}),
+    )
+
+    await create_audit_log_for_update(request_data)
+
+    await asyncio.sleep(1)
+
+    # now read the last log from the db
+    last_log = await prisma_client.db.litellm_auditlog.find_first(
+        where={"id": audit_log_id}
+    )
+
+    assert last_log.id == audit_log_id
+
+    setattr(litellm, "store_audit_logs", False)