First time I have encountered this installation. I checked with Azek, and can’t find anything about proper clearance to roof shingles. Your comments are welcomed.
Water won’t affect the Azec material but it sure will piss off the roofing installer the next time it needs to be replaced.
It should still be up a minimum of an inch for that purpose.
Plus they have a tendency to nail the product to low and poke holes in the flashing lower than should be.
Also no way to visually inspect the flashing for existence and/or damage.
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It should still be up a minimum of an inch above the shingles for future roofing.
The minimum clearance (if there was one specified) would most likely be with the shingle manufacturer’s recommendations, not those of the exterior wall covering manufacturer. With almost every type, you should see at least an inch. If the exterior wall covering is especially absorbent, you’d want to see more.
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Guys, i think you are troubled by some optical illusion here. If you zoom in it appears that the gap is actually far more than one inch. Can’t say for sure because of the angle, but appears the we can see the second shingle below the corner, hanging above the first one.
OP, do you have different angle?
Azek rep. said they don’t have any clearance requirements to roof shingles.
Yes Emil, it is hard to see from just a photo. When I zoom in on my MacBook Pro, it shows the shingles touching the wood.
Whatever, we know it needs at least and inch spacing. 
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The missing gap serves two primary purposes:
a) allows the shingles to dry so they don’t wear out prematurely in that spot
b) allows materials above and to the side of it to dry for many obvious reasons
The gap is almost always missing because it does not look pretty and buyers complain about it. It usually works, but not always 
That is a good eye to catch that Peter, and I agree with everyone on the clearance issue, my question is if this issue should be reported on? I know an inspector should be consistent on your personal level of issues reported on. I always here keep it simple? Is this one of the things that are to simple to report on? I personally probably would not have put that in a report, how would you experienced inspectors judge me on that? (I am still working on adjusting my inspecting approach, I’m just looking for thoughts)
When the homeowner has an issue related to something you did not report, the next contractor that shows up to work on the issue will throw you under the bus. always CYA It’s all about how you report it more so than “if” or “should”. Do you report missing kickouts? nobody mentioned it
Yes definitely, missing kick out. Without the kick out flashing installed the rain water or snow (depending on location) could possibly find its way behind the stone and destroy wall framing and sheathing or freeze and pop stone finish.
Good point, Greg. 
Actually Simon called the kick out out on the reply before mine
Thanks for your input. The real stone is adhered to directly to concrete block foundation, but I noted missing kickouts, as the construction method is prone to leaks. Kickouts normally are not required with brick veneer and cmu wall construction.
are you saying the walls were CMU all the way to the roof? How often is this the case where you inspect?
What I said above is reason enough to write it up. I’ve had way too many problems replacing roofing in the past because of that.
In this case, the cmu wall is right at/above the red lines in the photos. This home is in a flood zone, right at the edge of a creek.
There’s no wood, it’s Azek.