Question: Please help with my ISO 9 0 0 1 : 2 0 1 8 internal audit assignment below: nonconformities may be identified. Examine the incident

Please help with my ISO 9001:2018 internal audit assignment below:
nonconformities may be identified.
Examine the incident carefully. state the clause and standard
If you think that there is a nonconformity you should complete a Non-Conformity Report and categorise it as Major (indicating a system breakdown) or Minor (Indicating an isolated incident of failure to comply with requirements).
state the reasons for your decision and any additional actions which you would take, as an auditor in the situation.
In Concluding the audit, the Lead Auditor asks the President for evidence that the Company is monitoring and measuring its processes and its product. The President States " We don't need to monitor or measure anything, we don't release any product directly to the customer, it goes to another organization before it reaches the end user". When the auditor asks how they know if they are providing the product the customers expect and if they need to improve their work, the president replies, " We do a good job within this Industry. I don't know we can improve on it."

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