Uhh, Wizard, Observer's Authority isn't magic. It's an authority that allows whoever has it to have the knowledge of whatever they "observer" Think of it like she is reading a story right now, and that appeared in the script, so now she has read it.

It wouldn't deny Knox, because it isn't in the "mystery" it self, but on a plane above it.

Weird way to put it, BB can probably word it better.