Hi Mitch,
The Outlook for iOS/Android app generally sets off a lot of security alerts when it comes to MDM and managing Activesync connections. We'd need to know more about the client environment to pinpoint the exact issue, but some of them that come up frequently:
Outlook for iOS/Android is cloud backed. MS services act as sort of a man-in-the-middle - all devices connected to an Outlook account come through as single record.
Disabling Activesync doesn't necessarily disable access as the app uses rest APIs to communicate via MS cloud services.
The recommended course of action would generally be to block the Outlook app on the server side because of these gaps. If that's just not possible for this client because they wish to let their users take advantage of it, send me a note with more details about their setup and I'll check with our teams for possible workarounds - if they exist.
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Matt Shaver
System Architect
IBM
mshaver@us.ibm.com------------------------------