This is the President in a small company. They can do not do whatever they wish.
I personally don't think a quality policy on the wall is worth picking a fight about.
For this internal audit, write it up, and train the President on the policy. If they don't like it, rewrite it. But just address and move on.
I've been in these scenarios before, and there will be plenty of quality fights down the path. To me, this is one of them. It worth it.
So train on it as correction; and have regular discussion with employees as CA.
