Sonic Bam, this is basically my take on it.
If the AMP states that the part is to be removed for overhaul, then you fit an overhauled part. You can always check with the company that supplied the part to confirm what was done to the part, would not be the first time the form 1 was incorrect.
If you do not fit an overhauled part, or do the checks as Sonic Bam has suggested, then the person signing the CRS has just invalidated the C of A of the a/c.
This is because you are no longer in compliance with the AMP or AMS.
That is how l view it.