diff --git a/ee/lib/audit/project_setting_changes_auditor.rb b/ee/lib/audit/project_setting_changes_auditor.rb
index f982f47e2b24408d9a02544c62512ec531661057..8b360912c0cd88406d7aaae47fb4fbfd2e3c84dc 100644
--- a/ee/lib/audit/project_setting_changes_auditor.rb
+++ b/ee/lib/audit/project_setting_changes_auditor.rb
@@ -18,9 +18,20 @@ def execute
       end
 
       audit_squash_option
-      audit_changes(:merge_commit_template, as: 'merge_commit_template', entity: @project, model: model)
-      audit_changes(:squash_commit_template, as: 'squash_commit_template', entity: @project, model: model,
-                                             event_type: 'squash_commit_template_updated')
+      audit_changes(
+        :merge_commit_template,
+        as: 'merge_commit_template',
+        entity: @project,
+        model: model,
+        event_type: 'merge_commit_template_updated'
+      )
+      audit_changes(
+        :squash_commit_template,
+        as: 'squash_commit_template',
+        entity: @project,
+        model: model,
+        event_type: 'squash_commit_template_updated'
+      )
     end
 
     def attributes_from_auditable_model(column)
diff --git a/ee/spec/lib/audit/project_setting_changes_auditor_spec.rb b/ee/spec/lib/audit/project_setting_changes_auditor_spec.rb
index e113a347133c368e03cc2d8c2d5cc6fa95de9b37..d03f58e96492d4ab21d6def2ef8f80bb42aea1ed 100644
--- a/ee/spec/lib/audit/project_setting_changes_auditor_spec.rb
+++ b/ee/spec/lib/audit/project_setting_changes_auditor_spec.rb
@@ -2,7 +2,7 @@
 
 require 'spec_helper'
 
-RSpec.describe Audit::ProjectSettingChangesAuditor do
+RSpec.describe Audit::ProjectSettingChangesAuditor, feature_category: :audit_events do
   using RSpec::Parameterized::TableSyntax
   describe '#execute' do
     let_it_be(:user) { create(:user) }
@@ -111,6 +111,34 @@
           project_setting_changes_auditor.execute
         end
       end
+
+      context 'when merge_commit_template is changed' do
+        before do
+          project.project_setting.update!(merge_commit_template: 'old merge commit template')
+        end
+
+        it 'creates an audit event' do
+          project.project_setting.update!(merge_commit_template: 'new merge commit template')
+
+          aggregate_failures do
+            expect { project_setting_changes_auditor.execute }.to change(AuditEvent, :count).by(1)
+            expect(AuditEvent.last.details).to include({
+                                                         change: 'merge_commit_template',
+                                                         from: 'old merge commit template',
+                                                         to: 'new merge commit template'
+                                                       })
+          end
+        end
+
+        it 'streams correct audit event stream' do
+          project.project_setting.update!(merge_commit_template: 'new merge commit template')
+
+          expect(AuditEvents::AuditEventStreamingWorker).to receive(:perform_async).with(
+            'merge_commit_template_updated', anything, anything)
+
+          project_setting_changes_auditor.execute
+        end
+      end
     end
   end
 end