Hi,
Yes, you can audit the value for collation via Azure Policy. The Azure Policy alias for that property is Microsoft.Sql/servers/databases/collation
I would assume you know how to use Azure Policy and what are Azure Policy aliases. You can set your policy with deny effect to avoid anyone creating database without setting the correct collation. I do not think you can audit compatibility level as I believe this is not a setting you set when you create Azure SQL database.
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