Is the Hadith Qudsi, the gist of which is that Allah, the Most High, says: "O Children of Adam, if you think that I do not see you, why then do you challenge Me with sins in secret? And if you think that I do see you, why then do you make Me the most insignificant of those who look upon you?" authentic?

This statement is not found in the books of Hadith. However, it is mentioned in Jami' al-Ulum wa al-Hikam, on the authority of Abu al-Jad, that Allah revealed to a prophet to tell his people: "What is wrong with you that you conceal sins from My creation and display them to Me? If you believe that I do not see you, then you are associating partners with Me. But if you believe that I do see you, then why do you not consider Me the least significant of those who observe you?"