diff --git a/app/services/keys/create_service.rb b/app/services/keys/create_service.rb
index 32c4ab645dfaec2615423daaecdfce640b8bea2b..c256de7b35ddd11976fe1ee94ed07da6aca7ee74 100644
--- a/app/services/keys/create_service.rb
+++ b/app/services/keys/create_service.rb
@@ -2,6 +2,14 @@
 
 module Keys
   class CreateService < ::Keys::BaseService
+    attr_accessor :current_user
+
+    def initialize(current_user, params = {})
+      @current_user, @params = current_user, params
+      @ip_address = @params.delete(:ip_address)
+      @user = params.delete(:user) || current_user
+    end
+
     def execute
       key = user.keys.create(params)
       notification_service.new_key(key) if key.persisted?
diff --git a/changelogs/unreleased/services-usage-1.yml b/changelogs/unreleased/services-usage-1.yml
new file mode 100644
index 0000000000000000000000000000000000000000..d202273ca8c5a2a546614f2c5e3b554d6786a9e3
--- /dev/null
+++ b/changelogs/unreleased/services-usage-1.yml
@@ -0,0 +1,5 @@
+---
+title: Record audit event when an admin creates a new SSH Key for a user via the API
+merge_request: 33859
+author: Rajendra Kadam
+type: fixed
diff --git a/ee/app/services/ee/keys/create_service.rb b/ee/app/services/ee/keys/create_service.rb
index 4d11784460428c702e46f5e269ed8384662d578e..62126e0dd72e5cd48158e42493527715585c54e7 100644
--- a/ee/app/services/ee/keys/create_service.rb
+++ b/ee/app/services/ee/keys/create_service.rb
@@ -14,7 +14,7 @@ def log_audit_event(key)
       end
 
       def audit_event_service
-        ::AuditEventService.new(user,
+        ::AuditEventService.new(current_user,
                                 user,
                                 action: :custom,
                                 custom_message: 'Added SSH key',
diff --git a/ee/spec/services/keys/create_service_spec.rb b/ee/spec/services/keys/create_service_spec.rb
index 88fd1fda556180a5991dde8c1d89066a83647b98..f39c113868c1ca09e1fa589235725662b0ea0a13 100644
--- a/ee/spec/services/keys/create_service_spec.rb
+++ b/ee/spec/services/keys/create_service_spec.rb
@@ -3,14 +3,20 @@
 require 'spec_helper'
 
 RSpec.describe Keys::CreateService do
+  let(:admin) { create(:admin) }
   let(:user) { create(:user) }
-  let(:params) { attributes_for(:key) }
+  let(:params) { attributes_for(:key).merge(user: user) }
 
-  subject { described_class.new(user, params) }
+  subject { described_class.new(admin, params) }
 
   it 'creates' do
     stub_licensed_features(extended_audit_events: true)
 
     expect { subject.execute }.to change { SecurityEvent.count }.by(1)
+
+    event = SecurityEvent.last
+
+    expect(event.author_name).to eq(admin.name)
+    expect(event.entity_id).to eq(user.id)
   end
 end
diff --git a/lib/api/users.rb b/lib/api/users.rb
index ed9dac8b4943a11dbb3a03a59cf1b2c2962e18d8..831e6efe20350eecaa67458ccdacddabe7b9c46b 100644
--- a/lib/api/users.rb
+++ b/lib/api/users.rb
@@ -264,9 +264,9 @@ def reorder_users(users)
         user = User.find_by(id: params.delete(:id))
         not_found!('User') unless user
 
-        key = user.keys.new(declared_params(include_missing: false))
+        key = ::Keys::CreateService.new(current_user, declared_params(include_missing: false).merge(user: user)).execute
 
-        if key.save
+        if key.persisted?
           present key, with: Entities::SSHKey
         else
           render_validation_error!(key)