This process not only includes visual checking of the unit (i.e. labels has been placed properly, no scratches, no dents, all LED/lights are functional) but also checks that the correct firmware and version plus configuration has been loaded properly.
There are cases where a separate out of the box audit (OBA) process is defined, but most of the time this can be combined as well.
OBA is just a visual check making sure that the unit has, again, the correct labels plus all the manuals or other parts that needs to ship with it is also inside the box.
Besides checking good quality of the unit, this process also must ensure that none of the configuration will be touched.
Although these changes are sometimes acceptable, a good test engineer should always plan a strategy along with the firmware developers to put a feature in place to reset this information.