Symptoms
After you upgrade to macOS 10.12 Sierra, the first time you start an Office app for Mac you see the following security prompts for Microsoft AutoUpdate.
Cause
This issue occurs because new operating system security features require user-approval for Microsoft AutoUpdate to automatically check for updates. The Microsoft AU Daemon program is the background process that checks for updates when an Office app is opened. The Microsoft AutoUpdate program is the UI that is displayed when updates are found.
Workaround
To work around this issue, select Open on each of the security prompts that will confirm user approval of Microsoft AutoUpdate. After it is approved, the operating system will no longer display the prompts.
More Information
The following applications and versions are compatible with macOS 10.12 Sierra:
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Microsoft Office 2016 for Mac version 15.26 and later versions. See MS16-107: Description of the security update for Office 2016 for Mac: September 13, 2016 for more information.
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Microsoft Office 2011 for Mac version 14.6.8 and later versions. See MS16-107: Description of the security update for Office for Mac 2011 14.6.8: September 13, 2016 for more information.
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Microsoft Lync for Mac 2011 version 14.4.1 and later versions. See July 2016 update for Lync for Mac 2011 14.4.1 (KB3175174) for more information.