How to capture screen video (with audio) using VLC media player?

The steps below do sometimes result in a partial file which can't be played or some file without sound.

1. Click Media -> Stream -> Capture Device -> Capture Mode = Desktop -> Stream


2. Then select destination File = test.mp4, leaving Profile = Video - H.264 + MP3 (MP4) intact, and setting FPS=24.


3. Then press Stream button again. FLV player starts to count time, although Record button looks not pressed.


4. Then I do some playback of web videos and window manipulations.


5. Then press Stop button on VLC player.

How to perform complete task? Where is the audio capture setup (what device to capture)?