This is not the case. AKC is a registry body. A registration certificate identifies the dog as the offspring of a known sire and dam, born on a known date. It in no way indicates the quality or state of health of the dog. Breeders breeding show stock are trying to produce animals that closely resemble the description of perfection described in the breed standard.
Many people breed their dogs with no concern for the qualitative demands of the breed standard.
When this occurs repeatedly over several generations, the animals, while still pure-bred, can be of extremely low quality. The American Kennel Club registration system can be described as a cycle, which is repeated every generation. Application to register a litter must be submitted on a litter registration application form. This form as well as others mentioned here is available upon request. The owners of the sire and dam should complete and sign the appropriate portions of the application and submit it to AKC with the required fee.