There is quite a difference between a Pink Slip & a Blue Slip in NSW.
The Blue Slip is a bit like the old RTA "Pit Inspection", they check everything, including identity (as you said).
The Pink Slip is just a safety check, obvious things like wider wheels, excessively lowered suspension & blowers out of the bonnet will get picked, but many things will "go under the radar" because they outside of the scope of the inspection. The 2 items that I always quote are reversing lights & w/washers, neither are required for a Pink slip.
The engineering thing is a bit subjective. Any obvious mods then the Pink Slip inspector would want to see a cert. Anything "hidden" will go unnoticed.
Dr Terry
NSW Pink slip inspections must include any original manufactures items fitted under the ADR regulations , either on the data plate or spec sheet, and of course safety inspection. Windscreen washers, reverse lights, windscreen demister operation, wipers, emission systems, brake operation, transmission inhibitor switches and light, blinkers, lights correctly aimed and dipped, exhaust systems and the list goes on.
I often talk to owners at car shows that bang on how their car is 100% legal. In under ten seconds I generally notice the car has no heater blower, no washer jets, no transmission gear position indicator or light, and the list goes on. When I tell them of these very noticeable thing without even starting or getting inside the car the owners always tell me they are not required for rego. Pffff
Authorized inspections station examiners just aren't doing their job properly (some but not all). Have a look in the RMS inspection station rule book. If you have an old car that wasn't fitted from factory with windscreen washers then they will not be rejected for rego, however if the owner fitted an aftermarket windscreen washer kit to the car than they are required to work, no if's or buts.
The authorized examiner during a pink slip is required to visually inspect for changes to the vehicle that may require a blue slip or engineering inspection. During a pink slip inspection you are required to also check the VIN & engine numbers to ensure the inspection is being carried out on the correct vehicle presented, otherwise someone could present the vehicle for rego and change the plates with a similar car. If you had a heavily modified LH and borrowed a mates stock LX with your plates on it you could get around the system. A quick visible check of VIN and engine numbers to ensure its the correct vehicle and have not been tampered with.
The difference between a Pink and blue slips is the blue slip requires the recording of these numbers and digs deeper into ADR compliance and referring the vehicle to an alternative inspection if faults in compliance are found. Police or RMS if irregularities with VIN & engine numbers are found, and engineer if modifications outside OEM of certified aftermarket products.