The auto update (for the program and virus database) should work. I'll admit that for me it did not work since my last update a while back (build 4.1229 I think). However that is because I selected the option of constant internet connection even if I am not constantly connected to the net. Despite having DSL I have an upload/download limit of 1 Gb. So I turn of my internet unless I am using it.
Even though the system is not connected to the Internet and from what I know about a DSL connection it is always active if the modem is powered up.
Pretty much, what DavidR said is true.
It is due to its perspective where it
Asks if an update is available then will notify you if one is available if you select the
Update (Basic) A
sk when update is available in Settings.