Unless I missed it the OP has not specified what ISO audit. If 17025 the Quality Policy is covered in Section 4.2.2
The laboratory's management system policies related to quality, including a quality policy statement, shall be defined in a quality manual (however named). The overall objectives shall be established, and shall be reviewed during management review. The quality policy statement shall be issued under the authority of top management. It shall include at least the following:
a) lab mgmt commitment to good professional practice and to the quality of its testing and calibration in servicing its customers
b) the management's statement of the laboratory's standard of service
c) the purpose of the management system related to quality.
d) a requirement that all personnel concerned with activities familiarize themselves with quality docs and implement the policies and procedures in their work and
e) the lab mgmt commitment to comply with this International Standard and to continually improve the mgmt system effectiveness.
Perhaps the auditor is getting caught up in section 4.1.1 which states:
the lab or org of which it is part shall be an entity that can be held legally responsible.
That has nothing to do with the quality policy.