To verify the KIPS valves are working as they should, remove the pipe and while looking into the exhaust port, manually activate the KIPS. You should see the two drums (subports) rotating in sync and the main valve raising in concert.
On 'H' model bikes, you can easily manually activate the KIPS using the nut under the slotted cover that is on the LH side of the bike.
If you want to check if the centrifigal advancer is doing its job, you can observe the KIPS main shaft (under said cover) rotating and going back to proper rest postion while the engine is running (pipe either back on or not taken off in the first place).
If you have trouble seeing the shaft turn if you put a tie-wrap, piece of tape or maybe even white-out on the nut.
You kinda have to do both. If you can manually move 'stuff' that doesn't mean the activation mech is working ok. If you observe the activation process working properly, that doesn't mean one of the subport drives isn't stripped, or the drums have been installed improperly (due to mech error or because the manual is incorrect).
It's a good idea to check its operation from time to time anyway...notwithstanding the classic 220 flat spot.