Hi Johnny,
If Audit Log is not turned on but database config is correct, then the report just returns no records.
The error message is an indication of either database config issue or table structure issue.
You can turn on SQL Trace (SAP Note 1266339) to see the actual SELECT statement executed right before the error message in defaultTrace log file of NW. This will give you a hint which table/column to look for: if they do not exists - this is the root cause. If they are in place, then to check accessibility of that table, you can log on to WIP database with WIP user, and execute this query: if fails, then you should re-run CTC task as per ME Install Guide.
But if all these steps look quite complicated - just submit a support ticket with open connection to your system.
Regards,
Sergiy