An observation is an audit finding that falls below the nonconformity threshold. The auditor notes that an area is compliant but shows room for improvement or could develop into a nonconformity over time. Observations are not formal deviations and do not require mandatory corrective action. Still, you should take them seriously and document them, as they provide valuable hints about weaknesses in the management system. In the next audit, the auditor will often check whether you have addressed the observation.