2014-10-22 :435 972 10a4 Report REPORT EVENT: 2014-10-22 :437-0400 1 156 101 0 0 Automatic Updates Success Pre-Deployment Check Reporting client status.
2014-10-22 :439 972 10a4 Report CWERReporter finishing event handling.
To accomplish this, WSUS Setup creates a virtual directory named /Selfupdate under the Web site running on port 80 of the computer on which you install WSUS.
This virtual directory, called the self-update tree, holds the latest WSUS client.
Note  in my reply to Matthew would also seem to apply here.
The Windows shows us a perfectly functioning client that has not found any updates to install, but the console shows that two have been reported as needed.
2014-10-22 :448 972 fb0 AU AU setting next detection timeout to 2014-10-23 2014-10-22 :448 972 fb0 AU Setting AU scheduled install time to 2014-10-22 2014-10-22 :448 972 fb0 AU Successfully wrote event for AU health state:0 2014-10-22 :449 972 fb0 AU Successfully wrote event for AU health state:0 2014-10-22 :450 972 10a4 Report CWERReporter finishing event handling.
If you have a hundred clients all reporting the update as needed, but none of them finding it available, my money would be on files not downloaded.Third step is to confirm that the update files are actually downloaded for those updates. First, enable the File Information icon in the All Updates view, filter for Approved Updates only, and then sort on the File Information icon to see if any updates report "files not downloaded".Second thing is to check the Download Status of the server on the bottom right corner of the main page of the console.Occasionally, you might discover a client that isn’t automatically installing updates correctly.Such clients are typically identified during software update audits.Second step is to confirm that they're approved for a group that this client is a member of.Since it appears from the logfile the environment is using server-side targeting, that would be in whichever group(s) the client appears in the WSUS console.In fact, WSUS uses the site on port 80 only to host the self-update tree.To ensure that the self-update tree is working properly, first make sure a Web site is set up on port 80 of the WSUS server.To identify the source of the problem, follow these steps: 1. This can be done in two different ways—by checking the client’s registry (the most reliable technique) or, if you use Windows Server Update Services (WSUS), by checking the Reports page on the WSUS Web site. Examine any error messages returned by the Windows Update client by viewing the client’s %System Root%\Windows file.This text file contains detailed output from the Windows Update client, including notifications for each attempt to find, download, and install updates.