You are auditing a company that manufactures and sells kitchen equipment. You notice that the company documented information (records) shows a very large number of customer returns due to malfunction and breakage. This situation appears to have continued for several years.
You ask the Quality Manager about this, and he says the company is aware of the matter. You ask if these products are inspected before being dispatched.
The Quality Manager tells you that any obviously damaged items are removed by the packaging staff before being dispatched, but the small profit margin makes it uneconomic to implement a formal inspection process.
You ask what action is taken when these products are returned. The Quality Manager explains that most of these returns are stock items of relatively low value. Therefore, it has been decided that it is easier and more convenient to simply replace returned items than it is to investigate and implement a solution.

1-For correctly identifying the scenario as a nonconformity

2-Description of the nonconformity

3-Relevant evidence

clause and requirement: