Jim Howe said:
So ok where is the line in the sand? ... Now, aside from the waste of time and lack of planning by the planners, was fraud committed? You tell me!
Now you have raised a different issue than lying. The workers are being asked to do something that may not be value added but is required by management. If the control cards are not used for anything than what difference does it make how efficiently they are signed? Were inspectors verifying something or were they just signing off.
I have written up observations (not non-conformances) where I noted that no review was taking place but only a sign off. In the post-audit meeting I would note that the requirement was being met but it was ineffective and suggested that the requirement include what is to be reviewed and how objective evidence was collected to verify the review. Almost every time, the decision was made to drop the requirement.
This is where internal policies and procedures can get in the way of an effective management system.