I think the punched precincts are needed so that the tabulator knows what precinct it is reading. The punch card readers probably don't see writing. This is why write ins are counted manually.
A great place to contact for punch card questions is
http://cardamation.com as they repair/rent and sell what is essentially legacy equipment. And Dr. Doug Jones of the University of Iowa.
The how of tabulation fraud with punch cards could involve a trigger, such as a certain time, a sequence of highly unlikely votes, which would then trigger the software to count fraudulently. This could certainly not be noticed in pre-election testing.
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