Just go by what the code says. As far as actual field inspection, I have them lower the light from the top, or up from the bottom, or whatever works for the installation. Get up close and look for pin holes, cracks/gaps in the welds. You need to be very thorough. I've seen pin holes that were only visible from a certain angle, that cannot otherwise be seen. In other words, just because the light is inside the duct doesn't mean you will instantly see all holes. It helps to turn off the lights in the room where the duct is located.
There was a job at a vocational school once where there were (6) hoods with their individual ducts. There were alot of horizontal runs. We performed light tests on all the sections we could before the sections were installed. Then we inserted the light into the cleanout openings to inspect the joints where they welded the assemblies together. Found several places to fix that would not have been visible without the light.
Use a 100 watt bulb with the drop light guard removed. Works quite well.