The grades are based on the number of non-conformances identified during the audit: — grade — grade 2 (some observations); — grade 3 (minor non-conformances); — grade 4 (1-3 major non-conformances); — grade 5 (4 or more major non-conformances or 1-3 critical non-conformances); and — business critical (business critical non-conformances or 4 or more critical non-conformances).